)
The equation(5-4-1) is used to estimate the host firms'
aggregated output 
.
For simplicity, the term 
in the equation(5-4-1) is assumed to be
3 for all periods:
where is a technology level in equation(5-4-1).
This value is close to the average of 
obtained
by the equation(5-4-2).
The rate of labor share 
is also
assumed to be constant over time at 0.5:
where ¦Â is a labor share rate in equation(5-4-1).
This value is almost equal to the average value
of 
obtained from:
The result of estimating the value 
and is
summarized in the following table.
Table(6-3): Estimating Home Firms' Aggregated Output()
(Notice): 
is a deflator on gross domestic product(Base year = 1985),
is a rate of capital utilization, 
is a yen-valued
wage rate in the U.S.(unit: billion yen/one hour¡¦10 thousand persons),
is an estimated host firms' aggregated capital stock(unit:
billion yen), 
is a rate of capital share and is
an estimated host firms' aggregated output(unit:billion yen).
(Sources of Data): Annual Report on National Accounts,Economic Planning Agency, Government of Japan
The data of capital utilization(¦Ñ) is calculated by using the capital utilization index from EPA(1995-a) and the capital utilization data from Takenaka(1992).
As mentioned earlier, for the 
data,
the wage rate in the North America
(the United States, Canada and Mexico combined) should be used. But,
unfortunately, such data is not available statistically.
So in this empirical study, the data of the U.S. wage rate in manufacturing
sector is used. Since the actual values of wage rate of North America
is thought to be much larger, the actual values of and
is expected to be smaller than the estimated values above.
So, the comparison between the domestic marginal productivity of capital
(MPK)and the foreign marginal productivity of capital(MPK*)
is not possible in this study.