Cover IMF Working Papers
Growth, Productivity, and the Rate of Returnon Capital
Author:
Mr. Bankim Chadha
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and
Mr. Charles Adamsnull

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Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 035
Language:
English
Publication Date:
01 May 1992
DOI:
https://doi.org/10.5089/9781451978407.001
ISBN:
9781451978407
ISSN:
1018-5941
Pages:
40
Keywords:
WP; production function; diminishing returns; depreciation rate; income share; growth contribution; investment rate; labor input; augmented labor; Neoclassical theory; Capital productivity; Production growth; Capital income
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines the ability of alternative classes of growth models to explain the historical experience of the U.S. economy. The potential returns to the U.S. from raising its investment rate in terms of both the level and growth rate of future output are then quantified. The long-run growth performance of the U.S. economy is found to be broadly consistent with the predictions of the neoclassical growth model. Endogenous growth models, which suggest a larger contribution of capital to growth and long-run effects of investment on the growth rate, do not seem to be supported by the data.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 1992: Issue 035