TY - JOUR
T1 - Measuring factor income shares at the sectoral level
AU - Valentinyi, Ákos
AU - Herrendorf, Berthold
N1 - Funding Information:
We thank the editor Tim Kehoe and two anonymous referees for suggestions that improved the paper considerably. We thank Edward Prescott for many helpful discussions about input–output tables, Randal Konoshita from the BLS for providing us with additional data, and Ben Bridgman, Cara McDaniel, Paul Schreck, and the audiences at ASU and the Federal Reserve Bank of Minneapolis for comments. Valentinyi acknowledges support from the Hungarian Scientific Research Fund (OTKA) Project T/16 T046871 and Herrendorf acknowledges support from the Spanish Ministry of Education, Grant SEJ2006-05710/ECON.
PY - 2008/10
Y1 - 2008/10
N2 - 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.
AB - 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.
KW - Industry-by-commodity total requirement matrix
KW - Input-output tables
KW - Sector factor shares
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U2 - 10.1016/j.red.2008.02.003
DO - 10.1016/j.red.2008.02.003
M3 - Article
AN - SCOPUS:52149093178
SN - 1094-2025
VL - 11
SP - 820
EP - 835
JO - Review of Economic Dynamics
JF - Review of Economic Dynamics
IS - 4
ER -