Engines of Growth in the U.S. Economy

T. Ten Raa, E.N. Wolff

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Abstract

There is good reason to believe that R&D influences on TFP growth in other sectors are indirect.For R&D to spill over, it must first be successful in the home sector.Indeed, observed spillovers conform better to TFP growth than to R&D in the upstream sectors.Sectoral TFP growth rates are thus interrelated.Solving the intersectoral TFP equation resolves overall TFP growth into sources of growth.The solution essentially eliminates the spillovers and amounts to a novel decomposition of TFP growth.The top 10 sectors are designated engines of growt led by computers and office machinery.The results are contrasted to the standard, Domar decomposition of TFP growth.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages23
Volume2000-77
Publication statusPublished - 2000

Publication series

NameCentER Discussion Paper
Volume2000-77

Keywords

  • Spillovers
  • input-output
  • sources of growth

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