Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298791 
Year of Publication: 
2024
Series/Report no.: 
Hamburg Discussion Papers in International Economics No. 16
Publisher: 
University of Hamburg, Department of Economics, Senior Lecturer in International Economics, Hamburg
Abstract: 
This paper presents a puzzling finding: although France invests twice as much in intangible capital vis-à-vis Germany, both countries have similar LPG rates over the studied period from 1995 until 2020. We find that this difference in investments is driven by France's four- and two-and-a-half-fold investments in software and organizational capital. Our paper offers three perspectives to clarify the puzzle. First, higher investments in intangible capital in France might suggest a better readiness of the country towards the next generation of investment. However, France's investments in intangibles appear to be less efficient compared to those of Germany. Third, measurement problems in the software and organizational capital investment series are also to be considered to understand this major puzzle.
Subjects: 
Intangible capital
Labour Productivity
Germany
France
EU
Document Type: 
Working Paper

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