a1 Universidad Pablo de Olavide
a2 Universidad de Málaga
In this paper we use a dynamic general equilibrium growth model to quantify the contribution to productivity growth from different technological sources in the three leading economies of the world: Germany, Japan, and the United States. The sources of technology are classified into neutral progress and investment-specific progress. The latter can be split into two different types of equipment: information and communication technologies (ICT) and non-ICT equipment. We find that in the long run, neutral technological change is the main source of productivity growth in Germany and Japan. For the United States, the main source of productivity growth arises from investment-specific technological change, mainly associated with ICT. We also find that a non-negligible part of productivity growth in the three countries has been due to the technology specific to non-ICT equipment.
For helpful comments and suggestions, we are grateful to R. Armendáriz, A. Bongers, J.C. Conesa, S. Danthine, G. Fernández de Córdoba, M. Lindquist, A. Moro, J.J. Pérez, L. Puch, J. Steinberg, and participants at the Workshop on the New Economy, Málaga 2008. We thank G. Violante for providing us with a data set of quality-adjusted prices. Two anonymous referees and the editors offered very helpful comments and suggestions that improved the paper. Financial support from the Proyecto Excelencia Junta de Andalucía P07-SEJ-02479 is acknowledged.