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
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.
Catalogue number: C21-24/21-1998
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