Dale W. Jorgenson

Dale W. Jorgenson is Samuel W. Morris University Professor of Economics at Harvard University.

  • Double Dividend

    Double Dividend

    Environmental Taxes and Fiscal Reform in the United States

    Dale W. Jorgenson, Richard J. Goettle, Mun S. Ho, and Peter J. Wilcoxen

    A rigorous and innovative approach for integrating environmental policies and fiscal reform for the U.S. economy.

    Energy utilization, especially from fossil fuels, creates hidden costs in the form of pollution and environmental damages. The costs are well documented but are hidden in the sense that they occur outside the market, are not reflected in market prices, and are not taken into account by energy users. Double Dividend presents a novel method for designing environmental taxes that correct market prices so that they reflect the true cost of energy. The resulting revenue can be used in reducing the burden of the overall tax system and improving the performance of the economy, creating the double dividend of the title.

    The authors simulate the impact of environmental taxes on the U.S. economy using their Intertemporal General Equilibrium Model (IGEM). This highly innovative model incorporates expectations about future prices and policies. The model is estimated econometrically from an extensive 50-year dataset to incorporate the heterogeneity of producers and consumers. This approach generates confidence intervals for the outcomes of changes in economic policies, a new feature for models used in analyzing energy and environmental policies. These outcomes include the welfare impacts on individual households, distinguished by demographic characteristics, and for society as a whole, decomposed between efficiency and equity.

    • Hardcover $19.75 £15.99
  • Productivity, Volume 3

    Productivity, Volume 3

    Information Technology and the American Growth Resurgence

    Dale W. Jorgenson, Mun S. Ho, and Kevin Stiroh

    A study of information technology and economic growth since 1995 that tracks the American growth resurgence to its sources within individual industries.

    The American economy has experienced renewed growth since 1995, with this surge rooted in the development and deployment of information technology (IT). This book traces the American growth resurgence to its sources within individual industries, documents the critical role of IT, and shows how U.S. nvestment in IT has important parallels in other developed countries.In analyzing the experience in the United States, the authors identify four IT-producing industries, 17 IT-using industries, and 23 non-IT industries and show that the IT-producing and IT-using industries play a disproportionate role in the American growth resurgence. These industries account for only about 30 percent of US GDP but contributed half of the acceleration in economic growth. The study finds that differences in the relative importance of IT-producing industries in other G7 countries have contributed to wide disparities in the impact of IT on economic growth.

    Productivity, Volume 3 will be of special interest to analysts of the "new economy" and its remarkable persistence through periods of boom and recession.

    • Hardcover $11.75 £9.99
  • Econometrics, Volume 3

    Econometrics, Volume 3

    Economic Growth in the Information Age

    Dale W. Jorgenson

    Studies of the relation between information technology and economic growth trends.

    The relentless decline in the prices of information technology (IT) has steadily enhanced the role of IT investment as a source of economic growth in the United States. Productivity growth in IT-producing industries has gradually risen in importance, and a productivity revival has taken place in the rest of the economy. In this book Dale Jorgenson shows that IT provides the foundation for the resurgence of American economic growth.

    Information technology rests in turn on the development and deployment of semiconductors–transistors, storage devices, and microprocessors. The semiconductor and IT industries are global in scope, with an elaborate international division of labor. This poses important questions about the American growth resurgence. For example, where is the evidence of the "new economy" in other leading industrialized nations? To address this question, Jorgenson compares the recent growth performance in the G7 countries–Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Several important participants in the IT industries, such as South Korea, Malaysia, Singapore, and Taiwan, are newly industrializing economies. What does this portend for the future economic growth of developing countries? Jorgenson analyzes past and future growth trends in China and Taiwan to arrive at a fuller understanding of economic growth in the information age.

    • Hardcover $70.00 £58.00
    • Paperback $35.00 £28.00
  • Investment, Volume 3

    Investment, Volume 3

    Lifting the Burden: Tax Reform, the Cost of Capital, and U.S. Economic Growth

    Dale W. Jorgenson and Kun-Young Yun

    A presentation of the cost-of-capital approach for analyzing the economic impact of tax policy.

    This book presents a comprehensive treatment of the cost-of-capital approach for analyzing the economic impact of tax policy. This approach has provided an intellectual impetus for reforms of capital income taxation in the United States and around the world. The cost of capital and the marginal effective tax rate are combined with estimates of substitution possibilities by businesses and households in analyzing tax and spending programs. This makes it possible to evaluate tax reforms and changes in government spending. Studies of the economic impact of tax policies have taken two forms. First, the cost of capital has been incorporated into investment functions in macroeconomic models, which are used to model the short-run responses to tax policy changes. Second, the cost-of-capital approach has been integrated into applied general-equilibrium models used in evaluating the long-run economic effects of tax reforms.

    The cost-of-capital approach suggests two avenues for tax reform. One would retain the income tax base of the existing U.S. tax system, but would equalize tax burdens on all forms of assets as well as average and marginal tax rates on labor income. The other would substitute consumption for income as a tax base, while equating average and marginal tax rates on labor income.

    • Hardcover $15.75 £12.99
    • Paperback $40.00 £32.00
  • Econometrics, Volume 1

    Econometrics, Volume 1

    Econometric Modeling of Producer Behavior

    Dale W. Jorgenson

    New methodology for econometricians, based on the dual formulation of the theory of production in terms of prices.

    The objectives of econometric modeling of producer behavior are to determine the nature of substitution among inputs and outputs and of differences in technology, as well as the role of economies of scale in production. Recent advances in methodology, based on the dual formulation of the theory of production in terms of prices, have enabled econometricians to achieve these objectives more effectively. This volume summarizes the economic theory, the econometric methodology, and the empirical findings resulting from the new approach.

    • Hardcover $15.75 £12.99
  • Growth, Volume 2

    Growth, Volume 2

    Energy, the Environment, and Economic Growth

    Dale W. Jorgenson

    Volume 1: Econometric General Equilibrium Modeling presents an econometric approach to general equilibrium modeling of the impact of economic policies. Earlier approaches were based on the "calibration" of general equilibrium models to a single data point. The obvious disadvantage of calibration is that it requires highly restrictive assumptions about technology and preferences, such as fixed input-output coefficients. These assumptions are contradicted by the massive evidence of energy conservation in response to higher world energy prices, beginning in 1973. The econometric approach to general equilibrium modeling successfully freed economic policy analysis from the straitjacket imposed by calibration.

    As a consequence of changes in energy prices and new environmental policies, a wealth of historical experience has accumulated over the past two decades. Interpreted within the framework of the neoclassical theory of economic growth, this experience provides essential guidelines for future policy formation. Volume 2: Energy, the Environment, and Economic Growth presents a new econometric general equilibrium model of the United States that captures the dynamic mechanisms underlying growth trends and responses to energy and environmental policies. Jorgenson uses the model to analyze the impacts of environmental regulations on US economic growth and tax policies for controlling US emissions of carbon dioxide.

    • Hardcover $70.00 £58.00
    • Paperback $40.00 £32.00
  • Growth, Volume 1

    Growth, Volume 1

    Econometric General Equilibrium Modeling

    Dale W. Jorgenson

    Volume 1: Econometric General Equilibrium Modeling presents an econometric approach to general equilibrium modeling of the impact of economic policies. Earlier approaches were based on the "calibration" of general equilibrium models to a single data point. The obvious disadvantage of calibration is that it requires highly restrictive assumptions about technology and preferences, such as fixed input-output coefficients. These assumptions are contradicted by the massive evidence of energy conservation in response to higher world energy prices, beginning in 1973. The econometric approach to general equilibrium modeling successfully freed economic policy analysis from the straitjacket imposed by calibration.

    As a consequence of changes in energy prices and new environmental policies, a wealth of historical experience has accumulated over the past two decades. Interpreted within the framework of the neoclassical theory of economic growth, this experience provides essential guidelines for future policy formation. Volume 2: Energy, the Environment, and Economic Growth presents a new econometric general equilibrium model of the United States that captures the dynamic mechanisms underlying growth trends and responses to energy and environmental policies. Jorgenson uses the model to analyze the impacts of environmental regulations on US economic growth and tax policies for controlling U.S. emissions of carbon dioxide.

    • Hardcover $70.00 £58.00
  • Welfare, Volume 1

    Welfare, Volume 1

    Aggregate Consumer Behavior

    Dale W. Jorgenson

    This volume presents a new approach to econometric modeling of aggregate consumer behavior. The approach has successfully extricated demand modeling from the highly restrictive framework provided for more than half a century by the model of a representative consumer. Like the representative consumer model that preceded it, the new approach rests on the theory of individual behavior. The centerpiece of the volume is an econometric model of demand obtained by aggregating over a population of utility-maximizing consumers.

    The essential innovation is to incorporate attributes of consumers reflecting heterogeneous preferences into a model of aggregate behavior. Heterogeneity is captured by allowing preferences to depend on the demographic characteristics of households. This model unifies the two principal streams of empirical research on consumer behavior by pooling aggregate time series with cross-section data for individual households and provides a new point of departure for future research.

    • Hardcover $70.00 £58.00
  • Welfare, Volume 2

    Welfare, Volume 2

    Measuring Social Welfare

    Dale W. Jorgenson

    This volume presents an approach to the evaluation of economic policies through the econometric modeling of aggregate consumer behavior. While the preferences of individual consumers are revealed by their market choices, these preferences can be recovered only by econometric methods, not through the index numbers used in the official statistics. The richer and more robust methodology presented in this volume provides a fruitful point of departure for future policy evaluations.

    The econometric approach replaces ordinal measures of individual welfare that cannot be compared among individuals with cardinal measures that can. These are combined into an indicator of social welfare that reflects principles of horizontal and vertical equity. This approach unifies the measurement of poverty, inequality, and cost and standard of living. It extends the scope of normative economics to a broader range of issues in the evaluation of economic and social policies.

    • Hardcover $70.00 £58.00
    • Paperback $35.00 £28.00
  • Investment, Volume 1

    Investment, Volume 1

    Capital Theory and Investment Behavior

    Dale W. Jorgenson

    These studies of the cost of capital will inspire and guide policy-makers who share the goal of making the allocation of capital in a market economy more efficient.

    Volume 1 presents pioneering studies of the cost of capital as a determinant of investment expenditures. The cost of capital summarizes the future consequences of investment essential for current decisions. This concept has become an indispensible tool for studying the dynamics of investment behavior. Both macroeconome tric models and intertemporal general equilibrium models have employed the cost of capital as a determinant of short- and long-term investment expenditures.

    • Hardcover $15.75 £12.99
  • Investment, Volume 2

    Investment, Volume 2

    Tax Policy and the Cost of Capital

    Dale W. Jorgenson

    These studies of the cost of capital will inspire and guide policy-makers who share the goal of making the allocation of capital in a market economy more efficient.

    Volume 2 is devoted to the cost of capital approach to tax policy. This approach has supplied an important intellectual impetus for reforms of capital income taxation in the United States and around the world. Widespread applications of the cost of capital and the closely related concept of the marginal effective tax rate are due to the fact that these concepts facilitate the representation of economically relevant features of complex tax statutes in a highly succinct form.

    • Hardcover $70.00 £58.00
  • Productivity, Volume 1

    Productivity, Volume 1

    Postwar U.S. Economic Growth

    Dale W. Jorgenson

    These two volumes present empirical studies that have permanently altered professional debates over investment and productivity as sources of postwar economic growth in industrialized countries. The distinctive feature of investment is that returns can be internalized by the investor. The most straightforward application of this idea is to investments that create property rights, but these volumes broaden the meaning of capital formation to include investments in education and training.

    Postwar U.S. Economic Growth traces the outstanding postwar performance of the U.S. economy to investments in tangible assets and human capital. This volume provides the starting point for a new consensus on policies to generate growth by stimulating and rewarding investments. These policies will focus on returns that can be internalized by investors, ending the fruitless search for "spill overs" that can generate substantial growth without providing incentives for capital formation.

    • Hardcover $70.00 £58.00
    • Paperback $35.00 £28.00
  • Productivity, Volume 2

    Productivity, Volume 2

    International Comparisons of Economic Growth

    Dale W. Jorgenson

    These two volumes present empirical studies that have permanently altered professional debates over investment and productivity as sources of postwar economic growth in industrialized countries. The distinctive feature of investment is that returns can be internalized by the investor. The most straightforward application of this idea is to investments that create property rights, but these volumes broaden the meaning of capital formation to include investments in education and training.

    International Comparisons of Economic Growth focuses on comparisons among industrialized countries. Although Germany and Japan are often portrayed as economic adversaries of the U.S., postwar experiences in all three countries support policies that give high priority to stimulating and rewarding capital formation. In the Asian model of growth exemplified by Japan investments in tangible assets and human capital are especially critical during periods of rapid growth.

    • Hardcover $70.00 £58.00
    • Paperback $40.00 £32.00
  • Technology and Capital Formation

    Dale W. Jorgenson and Ralph Landau

    The contributions in this book bring a wealth of detailed empirical data and an unusually wide range of perspectives—from universities, government, and business—to bear on the exploration of this important interrelationship; they focus, in particular, on the role of capital in the production process.

    Capital formation is the most important source of economic growth, and investment in new capital interacts in key ways with the diffusion of new technology. The contributions in this book bring a wealth of detailed empirical data and an unusually wide range of perspectives—from universities, government, and business—to bear on the exploration of this important interrelationship; they focus, in particular, on the role of capital in the production process. Grouped into three broad categories, they take up the rate of technological advance and investment in computers, the relative efficiency of new and old capital goods, and the translation of capital formation into productive inputs in the private and government sectors of the U.S. economy.

    Dale W. Jorgenson looks at previous research to explain the controversy that began in the 1960s regarding capital as a factor of production. Computer prices are examined extensively and in great detail in two important studies by Ellen Dulberger and Robert Gordon, while Jack Triplett discusses the economic and engineering literature on the subject. Empirical research by Charles Hulten, James Robertson, and Frank Wykoff disproves the hypothesis that deterioration in the efficiency of older capital goods as a result of the 1970s energy crisis explains the subsequent slowdown in production growth. Wykoff offers a particularly rich study of the depreciation of business leased automobiles.

    Other Contributors Paul Pieper on the state of construction price statistics; Michael Harper, Ernst Berndt, and David Wood on alternative approaches to measuring the rate of return; John Strong on the market value of debt claims in U.S. financial markets; Dianne and Laurits Christensen, Carl Degen and Philip Schoech on the U.S. Postal Service; Michael Boskin, Marc Robinson and John Roberts on estimating federal government capital and net investment; and Ralph Landau on the interrelationship of technology and capital formation

    • Hardcover $60.00

Contributor

  • Clearer Skies Over China

    Clearer Skies Over China

    Reconciling Air Quality, Climate, and Economic Goals

    Chris P. Nielsen and Mun S. Ho

    A groundbreaking U.S.–Chinese inquiry into the effects of recent air pollution controls and prospective carbon taxes on China's economy and environment.

    China's carbon dioxide emissions now outstrip those of other countries and its domestic air quality is severely degraded, especially in urban areas. Its sheer size and its growing, fossil-fuel-powered economy mean that China's economic and environmental policy choices will have an outsized effect on the global environmental future. Over the last decade, China has pursued policies that target both fossil fuel use and atmospheric emissions, but these efforts have been substantially overwhelmed by the country's increasing energy demands. With a billion citizens still living on less than $4,000 per year, China's energy and environmental policies must be reconciled with the goals of maintaining economic growth and raising living standards.

    This book, a U.S.–Chinese collaboration of experts from Harvard and Tsinghua University, offers a groundbreaking integrated analysis of China's economy, emissions, air quality, public health, and agriculture. It first offers essential scientific context and accessible summaries of the book's policy findings; it then provides the underlying scientific and economic research. These studies suggest that China's recent sulfur controls achieved enormous environmental health benefits at unexpectedly low costs. They also indicate that judicious implementation of carbon taxes could reduce not only China's carbon emissions but also its air pollution more comprehensively than current single-pollutant policies, all at little cost to economic growth.

    • Hardcover $9.75 £7.99