New study challenges traditional measures of technological progress in the economy.
The article explores how changes in the prices of new capital can reflect advancements in technology specific to capital. By analyzing data on wages and prices, the researchers found that the traditional method of measuring this technological progress doesn't hold up. They discovered a slowdown in productivity in the 1970s across all sectors, followed by an acceleration in the capital sector in the mid-1990s. This challenges previous beliefs about the impact of capital-specific technological progress on the economy.