Title: Using investment data to assess the importance of price mismeasurement
Description: "This paper presents a new approach to assess the role of price mismeasurement in the productivity slowdown.  I invert the firm's investment decision to identify the embodied and disembodied components of productivity growth.  With a Cobb-Douglas production function, output price mismeasurement only should affect the latter.  Contrary to the mismeasurement hypothesis, I find that in the Post-War period, disembodied productivity grew faster in the hard-to-measure than in the non-manufacturing easy-to-measure sectors, and that disembodied productivity slowed down less in the hard-to-measure than in the easy-to-measure sectors since the 70's.  These results hold a fortiori when capital and labor are complements"--National Bureau of Economic Research web site.
Subjects: Industrial productivity, Measurement