Dale Jorgenson was born in May 7, 1933. He is a professor in Harvard University and also served as the chairman of Department of Economics. Dale Jorgenson's work in the theory on the growth of a dual economy and his development of estimation methods for rational distributed lags were widely recognized.
Dale Jorgenson's research includes information technology and economic growth, energy and the environment, tax policy and investment behavior, and applied econometrics. In 2013, Dale associated with other famous economists, designed environmental taxes to improve economic performance and enhance environmental quality. Jorgenson also led to the establishment of the World KLEMS Initiative at Harvard in 2010. This establishment helped to provide international comparisons of productivity at the industry level.
Jorgenson is interesting to us, in part, because he developed a method for calculating the user cost of capital - the implicit flow price for capital services that one should use in a determining the economic cost in production. Capital is a stock, labor is a flow. Cost is also a flow. So one needs a way to convert stock prices into some flow equivalent to get at economic cost.
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