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Physical and Human Capital over the Business Cycle

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  • Accolley, Delali

Abstract

The available disaggregated capital data are across industries. What one needs inter alia when calibrating multi-sector neoclassical growth models, are not industries’ capital endowments but the ones used in producing commodities, particularly consumption and investment goods. To fill this gap, following the existing literature on capital measurement and input-output analysis, we have sequentially produced these estimates for the US economy over the period 1998-2007. We have then used our estimates to calibrate and solve numerically a three-sector optimal growth model of physical and human capital accumulation. Using the right capital shares and stocks has improved the ability of the three-sector model to explain business cycle fluctuations.

Suggested Citation

  • Accolley, Delali, 2016. "Physical and Human Capital over the Business Cycle," MPRA Paper 71017, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71017
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    References listed on IDEAS

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    Cited by:

    1. Joab Dan, Valdivia Coria & Daney David, Valdivia Coria, 2019. "Efectos de la inversión en capital Humano en un contexto de equilibrio General [Effects of human capital investment in a general equilibrium context]," MPRA Paper 99644, University Library of Munich, Germany.
    2. Valdivia Coria, Joab Dan, 2023. "Infraestructura, educación, capital humano y crecimiento económico [Infrastructure, education, human capital and economic growth]," MPRA Paper 118770, University Library of Munich, Germany.

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    More about this item

    Keywords

    Capital measurement; Macroeconomics; Business Cycles;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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