Advertisement

Energy Prices and Productivity Growth

  • Dale W. Jorgenson
Part of the Scandinavian Journal of Economics book series (SJE)

Abstract

The sharp decline in economic growth since 1973 presents a problem comparable in scientific interest and social importance to the problem of unemployment in the Great Depression of the 1930s. Conventional methods of economic analysis have been tried and have been found to be inadequate. This paper outlines a new framework for understanding the slowdown in economic growth. We find that the fall in U.S. economic growth since 1973 has been due to the dramatic decline in productivity growth. Within the new framework we identify higher energy prices as an important determinant of the productivity slowdown.

Keywords

Economic Growth Productivity Growth Econometric Model Energy Price Labor Input 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Auerbach, Alan J. & Jorgenson, Dale W.: Inflation-proof depreciation of assets. Harvard Business Review 58 (5), 113–118, September–October 1980.Google Scholar
  2. Berndt, Ernst R. & Jorgenson, Dale W.: Production structure. Chapter 3 in U.S. energy resources and economic growth (ed. Dale W. Jorgenson and Hendrik S. Houthakker), Energy Policy Project, Washington, 1973.Google Scholar
  3. Berndt, Ernst R. & Wood, David O.: Technology, prices, and the derived demand for energy. Review of Economics and Statistics 56 (3), 259–268, August 1975.CrossRefGoogle Scholar
  4. Berndt, Ernst R. & Wood, David O.: Engineering and econometric interpretations of energy-capital complementarity. American Economic Review 69 (3), 342–354, September 1979.Google Scholar
  5. Binswanger, Hans P.: The measurement of technical change biases with many f actors of production. American Economic Review 64 (5), 964–976, December, 1974.Google Scholar
  6. Binswanger, Hans P.: A microeconomic approach to induced innovation. Economic Journal 84 (336), 940–958, December 1974.CrossRefGoogle Scholar
  7. Christensen, Laurits R. & Jorgenson, Dale W.: U.S. real product and real factor input, 1929–1967. Review of Income and Wealth Series 16 (1), pp. 19–50, March 1970.CrossRefGoogle Scholar
  8. Christensen, Laurits R., Jorgenson, Dale W. & Lau, Lawrence J.: Conjugate duality and the transcendental logarithmic production function. Econometrica 39 (4), 255–256, July 1971.Google Scholar
  9. Christensen, Laurits R., Jorgenson, Dale W. & Lau, Lawrence J.: Transcendental logarithmic production frontiers. Review of Economics and Statistics 55 (1), 28–45, February 1973.CrossRefGoogle Scholar
  10. Denison, Edward F.: Accounting for slower economic growth. The Brookings Institution, Washington, 1979.Google Scholar
  11. Diewert, W. Erwin: Aggregation problems in the measurement of capital. In The measurement of capital (ed. Dan Usher), pp. 433–538. University of Chicago Press, 1980.Google Scholar
  12. Fraumeni, Barbara M. & Jorgenson, Dale W.: The role of capital in U.S. economic growth, 1948–1976. In Capital, efficiency and growth (ed. George M. von Furstenberg), pp. 9–250. Ballinger, Cambridge, 1980.Google Scholar
  13. Gollop, Frank M. & Jorgenson Dale W.: U.S. productivity growth by industry, 1947–1973. In New developments in productivity measurement and analysis (ed. John W. Kendrick and Beatrice M. Vaccara), pp. 17–136. University of Chicago Press, Chicago, 1980.Google Scholar
  14. Hicks, John R.: The theory of wages, Macmillan, London 1932. (2nd ed., 1963.)CrossRefGoogle Scholar
  15. Jorgenson, Dale W.: Accounting for Capital, in Capital, Efficiency and Growth (ed. George M. von Furstenberg), pp. 251–319, Ballinger, Cambridge, 1980.Google Scholar
  16. Jorgenson, Dale W. & Fraumeni, Barbara M.: Substitution and technical change in production. In The economics of substitution in production (ed. Ernst R. Berndt and Barry Field), M.I.T. Press Press, Cambridge, forthcoming 1981.Google Scholar
  17. Jorgenson, Dale W. & Griliches, Zvi: Issues in growth accounting: A reply to Edward F. Denison. Survey of Current Business 52 (5), Part II, 65–94, 1972.Google Scholar
  18. Jorgenson, Dale W. & Lau, Lawrence J.: Transcendental logarithmic production functions. North-Holland, Amsterdam, forthcoming 1981.Google Scholar
  19. Kendrick, John W.: Productivity trends in the United States. Princeton University Press, Princeton, 1961.Google Scholar
  20. Kendrick, John W.: Postwar productivity trends in the United States, 1948–1969. National Bureau of Economic Research, New York, 1973.Google Scholar
  21. Samuelson, Paul A.: Prices of factors and goods in general equilibrium. Review of Economic Studies 21 (1), 1–20, October 1953.CrossRefGoogle Scholar

Copyright information

© The Scandinavian Journal of Economics 1982

Authors and Affiliations

  • Dale W. Jorgenson
    • 1
  1. 1.Harvard UniversityCambridgeUSA

Personalised recommendations