Working Paper: NBER ID: w8722
Authors: Andrew Atkeson; Patrick J. Kehoe
Abstract: In the manufacturing sector of the U.S. economy, nearly 9% of output is not accounted for as payments to either physical capital or labor. The value of this output is a little larger than the value of the stock of physical capital. We build a model to measure how much of this output can be attributed to payments to organization capital-organization-specific knowledge that is built up with experience. We find that roughly 4% of output can be accounted for as payments to organization capital and that this capital has roughly two-thirds the value of the stock of physical capital.
Keywords: No keywords provided
JEL Codes: E13; E22; E25; B41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| organization capital (P12) | manufacturing output (L60) |
| plant age (Q16) | specific productivity growth (O49) |
| organization capital (P12) | specific productivity growth (O49) |
| specific productivity growth (O49) | manufacturing output (L60) |