Capital services in Argentina. Methodology of estimation and its contribution to the productivity growth during the 1990`s. A hedonic valuation approach

• Autores: Ariel A. Coremberg
• Localización: Working papers = Documentos de trabajo: Serie EC - (Instituto Valenciano de Investigaciones Económicas), Nº. 2, 2004, 48 págs.
• Idioma: inglés
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• Resumen

  • This paper proposes to analyze the methodology of estimation of capital services in Argentina and its impact in the performance of the productivity growth during the 1990's. The capital stock is estimated according to the recommendations of the recent economic literature, mainly the OECD Capital Stock Manual; regarding how to use the hedonic valuation method (HV) to test the empirical depreciation of capital goods using a high desegregate data instead of the most known Perpetual Inventory Method (PIM) without empirical support. It is also presented a theoretical analysis about the methodological problems of both methods pointed out by the economic literature: the several assumptions in the PIM and the information problems regarding the use of traded used market prices in the HV case. The level of capital stock estimation is founded macroeconomic consistent with the principal national accounts aggregates. Taking into account the main recommendations of the OECD Productivity Manual and the OECD Capital Stock Manual, the paper reviews the proposals of estimation of capital services: efficiency-age profiles, level of aggregation, index number problem and the user cost approach in the context of their application of empirical estimation in Argentina. Given the relevance and dynamism of capital stock services for growth processes, an accurate measurement of this variable is critical. Thus, heterogeneity acquires more relevance, as well as the type of weights and the index numbers used to estimate its contribution to output. According to these results, evidences may indicate that during the nineties there was no productivity gain in the sense of Solow in Argentina. In any case, it may be inferred that the profile of economic growth was of the extensive type based on the accumulation of capital rather than disembodied technological progress or non-pecuniary spillovers.