Capital Operating Time and total Factor Productivity Growth in France
June 1, 2003
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Summary
Data on the weekly operating time of capital improve the measurement of effective capital input in production. The production function of the French business sector is found to be consistent with a Cobb-Douglas technology under constant returns to scale. Total factor productivity growth, estimated as an unobservable variable, has declined steadily since the late 1970s, but more slowly since 1994. During the 1990s, a secular increase in shift work raised the operating time of capital and began to contribute positively to growth, albeit only slightly.
Subject: Capacity utilization, Financial institutions, Labor, Production, Productivity, Stocks, Total factor productivity
Keywords: A. production function specification, business sector, Capacity utilization, capital service, Capital stock utilization, Cobb-Douglas production function, labor organization, output elasticity, Productivity, Stocks, TFP growth, total factor productivity, WP
Pages:
20
Volume:
2003
DOI:
Issue:
128
Series:
Working Paper No. 2003/128
Stock No:
WPIEA1282003
ISBN:
9781451935691
ISSN:
1018-5941
