The paper studies the drivers of productivity at country and sectoral levels over the period 2000-2017 with the focus on the impact of capital accumulation and structure. The analysis confirms an especially important role of ICT and intangible digital capital for productivity growth,...

Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other research activities, such as software. Second, argument still rages...

Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other “research” activities, such as software. Second, argument still...

For the mid to late 1990s and early 2000s, the basic neoclassical growth theory predicts a steady Japanese economy, when in fact the Japanese economy was depressed. This study applies the new theory with intangible investment and non-­neutral technology proposed by McGrattan & Prescott (2010)...

This paper explores the importance of investment-specific technology changes in anticipated TFP fluctuations. To this end, we identify two types of news shocks with the maximum forecast error variance approach: news shocks to TFP and news shocks to the relative price of investment. We show in a...

The study analyses the relationships between capital dynamics, productivity, global value chains and foreign direct investment using panel data techniques. Among other results, we confirm the high importance of tangible and intangible ICT capital for productivity and GVC integration. We examine...

We show that an increase in aggregate uncertainty - measured by stock market volatility - reduces productivity growth more in industries that depend heavily on external finance. The mechanism at play is that during periods of high uncertainty, firms that are credit constrained switch the...

This paper uses a new cross-country cross-industry dataset on investment in tangible and intangible assets for 18 European countries and the US. We set out a framework for measuring intangible investment and capital stocks and their effect on output, inputs and total factor productivity. The...

For the mid to late 1990s and early 2000s, the basic neoclassical growth theory predicts a steady Japanese economy, when in fact the Japanese economy was depressed. This study applies the new theory with intangible investment and non-neutral technology proposed by McGrattan & Prescott (2010) to...

Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other research activities, such as software. Second, argument still rages...