This paper explores some interactions between energy and capital that affect firms’ productive performance through indirect effects of energy price changes. Different capital stocks (including high-tech capital) and different U.S. manufacturing industries (including high and low energy- and capital-intensive industries) are examined. This allows evaluation of cross-effects, expressed as the impact of changing capital composition on energy conservation (computer-induced energy conservation) and energy price effects on capital returns (including composition, utilization and scale). The resulting effects on productivity growth are then considered, through the impact of energy price changes both on the demand and cost share of energy, and on the measured returns to different types of capital.
BerndtErnst R.MorrisonCatherine (1992a). “High-Tech Capital Formation and Economic Performance in U.S. Manufacturing Industries: An Exploratory Analysis”, National Bureau of Economic Research Working Paper #4010, April.
2.
BerndtErnst R.MorrisonCatherine (1992b). “Assessing the Productivity of Information Technology Equipment in U.S. Manufacturing Industries”, presented at the 1990 AEA Meetings in Washington, D.C., manuscript.
3.
BerndtErnst R.MorrisonCatherine I.WoodDavid O. (1983). “The Modeling, Interpretation and Measurement of Capacity Utilization”, Bureau of the Census Technical Note, May.
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BerndtErnst R. and David O. Wood (1975). “Technology, Prices and the Derived Demand for Energy”, Review of Economics and Statistics, Vol. 56, No. 3, August, pp. 259-268.
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BerndtErnst R. and David O. Wood (1979). “Engineering and Econometric Interpretations of Energy-Capital Complementarity”, American Economic Review, Vol. 69, No. 3, September, pp. 342-354.
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BerndtErnst R.WoodDavid O. (1982). “The Specification and Measurement of Technical Change in U.S. Manufacturing”, in MoroneyJohn R. (ed.), Advances in the Economics of Energy and Resources, Vol. 4, Greenwich, CT: JAI Press, pp. 199-221.
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BerndtErnst R.WoodDavid O. (1984). “Energy Price Changes and the Induced Revaluation of Durable Capital in U.S. Manufacturing During the OPEC Decade”, M.I.T. Energy Laboratory Report No. 84-003, March.
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BerndtErnst R.WoodDavid O. (1987a). “Energy Price Shocks and Productivity Growth: A Survey”, in Energy: Markets and Regulation, GordonRichard L.JacobyHenry D.ZimmermanMartin B. (eds.), Cambridge: MIT Press.
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BerndtErnst R.WoodDavid O. (1987b). “Interindustry Differences in the Effects of Energy Price-Induced Capital Utilization Changes on Multifactor Productivity Measurement”, in MoroneyJohn R. (ed.), Advances in the Economics of Energy and Resources, Vol. 6, Greenwich, CT: JAI Press, pp. 87-123.
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DertouzosMichaelLesterRichardSolowRobert (1990). Made in America: Regaining the Productive Edge, Cambridge, Massachusetts: M.I.T. Press.
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MorrisonCatherine J. (1985). “Primal and Dual Measures of Economic Capacity Utilization: An Application to Productivity Measurement in the U.S. Automobile Industry”, Journal of Business and Economic Statistics, October1985, Vol. 3, No. 4, pp. 312-324.
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MorrisonCatherine J. (1988a). “Quasi-Fixed Inputs in U.S. and Japanese Manufacturing: A Generalized Leontief Restricted Cost Function Approach”, Review of Economics and Statistics, Vol. 70, No. 2, May1988, pp. 275-287.
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MorrisonCatherine J. (1988b). “Subequilibrium in the North American Steel Industries: A Study of Short Run Biases from Regulation and Utilization Fluctuations”, Economic Journal, Vol. 98, No. 391, June1988, pp. 390-411.
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MorrisonCatherine J. (1992). “Unraveling the Productivity Growth Slowdown in the U.S., Canada and Japan: The Effects of Subequilibrium, Scale Economies and Markups”, National Bureau of Economic Research Working Paper #2993, June, 1989, forthcoming in the Review of Economics and Statistics.
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MorrisonCatherine J. (1992b). “Investment in Capital Assets and Markup Behavior: The U.S. Chemicals and Primary Metals Industries in Transition”, National Bureau of Economic Research Working Paper #3828, September, forthcoming in the Journal of Business and Economic Statistics.
