Factor Costs and Factor Use: An Analysis of Labor, Capital, and Natural Resource Inputs

of the United States. The deflator for gross book value of structures in year T, DST, is: T SIt dst DST = T t-=T-n sit t=T-n where Sit is the constant dollar investment in structures undertaken by all manufacturing industries in year t. Given the assumption made above, the resulting deflator will be applicable to all the sample industries. The two components of gross book value cannot be individually deflated because re- ported gross book value is not always dis- aggregated into structures and non- structures. Therefore, a composite deflator is calculated as a weighted average of the non- structures deflator and the structures defla- tor. In each manufacturing industry the weights are the average relative shares of structures and nonstructures in gross book value during the period 1967-1971. The re- sulting figures are used industry by industry to deflate the series on the gross book value of capital assets, forming the constant dollar gross book value series that serve as our measures of capital stocks. B. Derivation of the Natural Resource Prod- uct Input Series The annual outputs of renewable natural resource products are obtained from Agricul- tural Statistics, a statistical yearbook pub- lished by the Department of Agriculture. The dispositions of natural resource product outputs are given for relatively large pur- chasers of these products. These disposition figures permit the imputation of input usage by our sample manufacturing industries. Minerals Yearbook, a publication of the U.S. Department of the Interior, Bureau of Mines, is the source for the output of non- renewable natural resource products except petroleum. Crude petroleum production and imports are obtained from the American Pe- troleum Institute, Petroleum Facts and Fig- ures [2]. The end uses of yearly output flows ar published for major purchasers of these nonrenewable resource products. The following lists the natural resource product inputs used by each manufacturing industry. The first three industries process renewable resource products, and the re- maining industries fabricate nonrenewable resource products. NATURAL RESOURCE PRODUCTS INCLUDED IN THE SAMPLE