Measuring factor income shares at the sectoral level

Ákos Valentinyi, Berthold Herrendorf

Research output: Contribution to journalArticle

103 Scopus citations

Abstract

Many applications in economics use multi-sector versions of the growth model. In this paper, we measure the income shares of capital and labor at the sectoral level for the US economy. We also decompose the capital shares into the income shares of land, structures, and equipment. We find that the capital shares differ across sectors. For example, the capital share of agriculture is more than two times that of construction and more than 50% larger than that of the aggregate economy. Moreover, agriculture has by far the largest land share, which mostly explains why it has the largest capital share. Our numbers can directly be used to calibrate standard multi-sector models. Alternatively, if one wants to abstract from differences in sector capital shares, our numbers can be used to establish that this is not crucial for the results.

Original languageEnglish (US)
Pages (from-to)820-835
Number of pages16
JournalReview of Economic Dynamics
Volume11
Issue number4
DOIs
StatePublished - Oct 2008

Keywords

  • Industry-by-commodity total requirement matrix
  • Input-output tables
  • Sector factor shares

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Measuring factor income shares at the sectoral level'. Together they form a unique fingerprint.

  • Cite this