Archived — Working Paper Number 21, Capital-Embodied Technical Change and the Productivity Growth Slowdown in Canada, April 1998

Strategic Policy Sector

Economic Research and Policy Analysis Branch

Working Paper Number 21, Capital-Embodied Technical Change and the Productivity Growth Slowdown in Canada, April 1998

Previous empirical studies on Canadian productivity growth have been inconclusive in identifying the causes of the post-1973 productivity slowdown in Canada. This paper investigates whether the vintage effect, which states that new capital is more productive than old capital, has played an important role in this productivity slowdown in Canada. The results show that the slowdown in the trend toward "youthening" of the capital stock has contributed somewhat to the slowdown in labour productivity growth.

Date: 1998
Format: PDF
Catalogue number: C21-24/21-1998
ISBN: 0-662-63524-8

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