AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Producing Tangible and Intangible Capital
AEA Papers and Proceedings
(pp. 498–503)
Abstract
We compare the production technologies of tangible and intangible investment using Bureau of Economic Analysis input-output tables and Integrated Industry-Level Production Account (KLEMS). We show that intangible investment is built mainly with domestic, college-educated labor and relatively few imported inputs, while tangible investment depends much more on foreign inputs and less on high-skill labor. This contrast implies that expanding intangible capital is more likely to run into domestic skill bottlenecks—making its supply less elastic and its response to subsidies more wage intensive than quantity intensive.Citation
Gomez, Matthieu, and Emilien Gouin-Bonenfant. 2026. "Producing Tangible and Intangible Capital." AEA Papers and Proceedings 116: 498–503. DOI: 10.1257/pandp.20261080Additional Materials
JEL Classification
- D57 General Equilibrium and Disequilibrium: Input-Output Tables and Analysis
- G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials