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Vintage capital growth models have been at the heart of growth theory in the 1960s. This research line collapsed in the late 1960s with the so-called embodiment controversy and the technical sophisitication of the vintage models. This chapter analyzes the astonishing revival of this literature in the 1990s. In particular, it outlines three methodological breakthroughs explaining this resurgence: a growth accounting revolution, taking advantage of the availability of new time series; an optimal control revolution, allowing to safely study vintage capital optimal growth models; and a vintage human capital revolution, along with the rise of economic demography, accounting for the vintage structure of human capital similarly to physical capital age structuring. The related literature is surveyed.

Uses a model of technical change embodied in capital equipment to analyse average labour productivity growth. Determinants of productivity growth identified in this analysis are: (1) the rate of labour‐saving technical change; (2) the differential in the rates of change of wages and the rental price of capital; and (3) the rate of growth of industry productive capacity. Finds evidence that each of the identified factors has a positive and statistically significant relationship to average labour productivity growth in a cross‐section of Australian manufacturing industries.

New series of Spain's capital stock and input are provided for the last one and a half centuries for the first time. Capital stock and input grew at average rates of 3.5 and 3.7 percent per year, respectively, but not at a steady pace since rates accelerated dramatically during the “Golden Age.” Two major structural changes accompanied this process. The composition of the capital stock and returns to it changed gradually as the contribution of producer durables rose while that of structures declined. Capital deepening took place in the long run. Although the capital–output ratio increased over time, in phases of accelerated growth the productivity of capital rose.

The paper aims to investigate the relationship between the age of employees and employers on the one hand and establishment closure probability on the other.

The paper is based on large‐scale longitudinal Danish register data. Past employer and employee age distributions are used as predictors for future establishment closure probability by means of a discrete‐time hazard model.

The paper shows that the age of the employer and the age distribution of the employees are predictors of an establishment's future closure probability. This probability assumes a temporary maximum when employers or large shares of employees are reaching retirement age. Estimates suggest that a ten percent increase in the share of employees who will be of retirement age in the future increases future annual closure probability by approximately ten percent.

It is possible to interpret the finding of temporary maxima in the closure probabilities as the result of the retirement decisions of individuals. However, this interpretation of the results would have to rest on an identifying assumption. Also, findings are driven by small establishments, and should not be generalised to firms of medium size or above.

The paper can be used to make predictions of future establishment closure rates.

Policies that reduce the costs of employee turnover and firm ownership changes might decrease closure rates.

This paper adds to our knowledge of the relationships between the age of individuals and firm performance. Also, it considers the role of retirement as a largely overlooked determinant of industry dynamics.

Indonesia is the fourth most populous country in the world, which has a strong effect on primary energy use and depletion of natural resources. This paper considers energy intensity (EI) defined as a measure of the amount of energy it takes to produce a dollar's worth of economic output. The purpose of the paper is to explore how different factors contributed to the decline in Indonesia's EI.

The cointegration regression methodology is applied to explore the long-term nexus between EI and its factors in Indonesia during 1990–2016.

Results show that domestic credit to the private sector, as well as the share of alternative energy, has a significant impact on the decline of EI in Indonesia.

We do not try to rule out other possible determinants of EI. We consider the determinants of EI using time series data, while an ideal analysis would be based on panel-level data. Another limitation is that the study covers only the small-time period from 1990 to 2016.

Our findings serve to aid the government and policymakers in prioritizing improvements in the sphere of energy policy. An important policy implication, regarding Indonesia, that arises from our study is that, for the country to be able to decrease its EI, it must be able to develop its financial market and zero-carbon energy sources, mainly geothermal energy with its huge potential.

We show that energy prices, financial development and the share of alternative energy sources contribute to EI decrease. Policy recommendations include geothermal and solar energy development as one of the most prospective sources of alternative energy in Indonesia.

The vintage model of capital accumulation predicts that technical progress depends on the installation of new capital equipment. In this chapter it is found that investment raises labor productivity in the G7 countries and Australia. This finding implies that the decline in investment during the global financial crisis will have a long lasting detrimental effect on labor productivity and hence wages.

To find out the behaviour of firms with objectives of Islamic Shariah when a number of techniques are working simultaneously with the different productive efficiencies.

This is a theoretical paper based on the modified model of layers of techniques which was initially developed by Professors W. Leontief and P. N. Mathur and tries to evaluate the impact of entrance of new techniques on obsolescence in the ethical‐moral cum economic framework of Islamic political economy system.

This study suggests wastage of the resources because of their economic obsolescence and on the cost of future generation is not allowed in the system of Islam and ultimately decrease the social welfare level.

A dynamic cum marginal input‐output table can be constructed on the basis of this framework and formulate the socio‐economic policy.

This research is beneficial to the researchers, policy makers and social scientists for the enhancement of the level of social welfare through this model.

Presents results of an investigation into the rate of rental and capital obsolescence in the City of London office market. Using a theoretical approach based on a “vintage model” of capital investment and data from the IPD database, assesses the historic rate of obsolescence in the City and draws comparisons with previous studies, finding similar rates of rental obsolescence (1.2 per cent p.a.), but lower rates of capital obsolescence (1.6 per cent p.a.). Considers the potential for an acceleration in the rate of obsolescence resulting from the introduction of new working practices and the emergence of an endemic over‐supply in the market.

This paper is a commentary on the third in the series of consultative papers (CP3) on a New Basel Capital Accord for banks, earlier papers being issued in 1999 and 2001. While CP3 retains the overall structure of its predecessor, it contains many revisions and a more complete set of rules. Greater coherence has not, however, been accompanied by a reduction in complexity. This is partly an inevitable consequence of attempting to set global standards for banks at different levels of sophistication. But it also reflects financial innovation and the growing complexity of banking practice, which are a continuing source of problems for regulation. Many of the revisions in CP3 in comparison with 2001 are a response to representations from governments and the financial sector in areas such as greater flexibility regarding adoption of different elements of the internal ratingsbased approach, adjustment of the risk weights for lending to small and medium‐sized enterprises (SMEs) to avoid punitively high interest charges, and a less prescriptive approach to measuring operational risk under the most advanced option for handling the subject. The Basel Committee on Banking Supervision intends to address some continuing reservations concerning the shape of the New Accord before mid‐2004. Even these further changes, however, are unlikely to bring on board major countries which have declared that they will not apply the New Accord or limit its application to a minority of their banks.

The hypothesis that the growth in total GNP can also be explained by other factors than the growth in total inputs (capital and labour) and their respective productivities is analysed by the use of 1960‐1985 OECD country data. The OLS estimations of the models of embodied and disembodied technical change in both capital services as measured by the R&D expenditures and labour productivity as measured by investment expenditures in education and health showed very significant results. However, despite the inclusion of these expenditures in the aggregate production function, GNP growth has not been fully exhausted in all OECD countries. Indeed, the unexplained residual which was computed for these countries turned out to be of non‐negligible magnitude and growth. The assumed non‐factor sources of growth containing the unexplained residual which may not be associated by the movement along a production function would include non‐quantifiable political, social and institutional forces which, in some cases, might interact to speed or adversely delay growth unless they remain stable or improved.