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STATE-LEVEL CAPITAL AND INVESTMENT: UPDATES AND IMPLICATIONS

Authors

  • STEVEN YAMARIK

    1. Yamarik: Professor, Department of Economics, California State University at Long Beach, Long Beach, CA 90840. Phone 1-562-985-4634, Fax 1-562-985-5804, E-mail syamarik@csulb.edu
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    • I would like to thank the three anonymous referees for their comments and suggestions.


Abstract

This paper presents state-by-state capital stock and gross investment estimates for 1990–2007. I follow the methodology of Garofalo and Yamarik (The Review of Economics and Statistics, 84, 2002, 316–23) and apportion the national capital stock to the individual states using one-digit NAICS income data. I then test the soundness of the data by estimating a Cobb–Douglas production function and a Solow growth model using a variety of panel data estimators. Under both models, I obtain estimates of the output elasticity for capital that are plausible and close to the observed national income share of one-third. (JEL O47, O51, R11)

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