I'd be the last to claim I fully understood the distinction between capital deepening and capital widening, but it strikes me that all you need to be able to measure whether it is happening or not is to have in instrumental variable which is locally monotonic in the (true, unobservable) amount of capital. I don't think you need the stronger assumption of being able to actually measure the capital stock.
dd -----Original Message----- From: Devine, James [mailto:[EMAIL PROTECTED]] Sent: 25 April 2002 03:35 To: '[EMAIL PROTECTED] ' Subject: [PEN-L:25387] RE: Capital Spending Okay, but if you can't measure "capital," how do you measure -- or even define -- "capital deepening"? ___________________________________________________ Email Disclaimer This communication is for the attention of the named recipient only and should not be passed on to any other person. Information relating to any company or security, is for information purposes only and should not be interpreted as a solicitation or offer to buy or sell any security. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change without notice. All e-mail messages, and associated attachments, are subject to interception and monitoring for lawful business purposes. ___________________________________________________
