APPENDIX A
Basic Growth-Accounting Methodology
The empirical relationship used to estimate growth of multifactor productivity by the basic growth-accounting methodology is shown below:
![uppercase delta uppercase t over uppercase t = uppercase delta uppercase q over uppercase q minus [(lowercase alpha * uppercase delta Labor over Labor) + (lowercase beta * uppercase delta Capital over Capital) = (lowercase gamma * uppercase delta Intermediate Inputs over Intermediate Inputs)]](../images/equation_01.gif)
Where:
α = Share of labor cost in output
β = Share of capital cost in output
γ = Share of intermediate inputs cost in output.
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