Nomura, Koji: Measurement of Capital and Productivity in Japan, (ISBNF4-7664-1007-6 C3333), pp.633, Keio University Press, November 2004. (Table of Contents)
This book is a comprehensive research on measuring capital as a factor input of production and analyzing economic growth and productivity by industry during 1960-2000 in Japan. In this book, the author provides new estimates of time-series capital formation matrixes, productive capital stock matrixes with detailed classification by asset and industry, and user costs of capital incorporating the Japanese tax structure including taxes on business income, capital gain, acquisition and property of capital, and some preferential taxation.
Based on the estimated results, the author analyzes how total factor productivity (TFP) contributes to Japanese economic growth and how TFP and capital deepening boosts labor productivity at industry level and the aggregate level, from periods of high economic growth (1960s), to the turning points resulting from the first oil shock (1973) and the yen's appreciation as a result of the Plaza agreement (1985), and the lost decade (1990s) for the Japanese economy. Also, based on our estimates and the U.S. estimates constructed by Professor Dale Jorgenson's research group at Harvard University, the author estimates productivity gap by industry between the U.S. and Japan, measuring purchasing power parities for prices of domestic output goods, intermediate consumption goods, and labor and capital services. The author describes the catching up of Japan's productivity relative to that in the U.S. from 1960s to 1980s, and the recess in 1990s, when some Japanese manufactures lost their price competitiveness.