Development of the productive capacity in Slovakia 1950-1992

In this paper a clay-clay vintage model will be presented. A macro-economic analysis of the process of capital formation and of the productive capacity during the period 1950-1992 is given. At the same time a description of the labour market situation has been developed in terms of available jobs and actual employment. The results of the estimation and simulation procedures show a level of the utilization rate of labour above 1 in the years 1950-1959 and again during 1985-1992 (this could be labelled as labour hoarding); the actual employment is higher than the calculated number of jobs. A remarkably high rate of disembodied technical progress (4.1%) has been established, probably due to the importance which has been put in the past on the significance of general education. The rate of the embodied technical progress is in the same order of magnitude. The estimated technical maximum age (30 years) and the the average age (6.9-11 years) of the production apparatus are relatively high; the non-market character of investment decisions in the history of Slovakia has left visible traces in the microeconomic structure.