growth accounting
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
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Abstract
Growth accounting consists of a set of calculations resulting in a measure of output growth, a measure of input growth, and their difference, most commonly referred to as total factor productivity (TFP) growth. It can be performed at the level of the plant, firm, industry, or aggregate economy. This article discusses the theoretical interpretation of the growth-accounting exercise, problems of measurement, and main empirical results. It concludes with a (very selective) history of the field.
Keywords
growth accounting; input–output analysis; measurement error; national accounts; production functions; research and development; specification error; technical change; total factor productivity; vintage capital
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How to cite this article
Caselli, Francesco. "growth accounting." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 24 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_G000126> doi:10.1057/9780230226203.0683

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