J. Bradford De Long|Lawrence H. Summers
Equipment Investment and Economic Growth
National Bureau of Economic Research|Harvard University|National Bureau of Economic Research|Harvard University
using data united nations comparison project penn world table find machinery equipment investment strong association growth 19601985 extra percent gdp invested equipment associated increase gdp growth one third percentage point per year much stronger association found growth components investment variety considerations suggest association causal higher equipment investment drives faster growth social return equipment investment wellfunctioning market economies order 30 percent per year