Appendix A. Basic Growth - Accounting Methodology
Thursday, September 6, 2012
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:
Where:
= Growth of MFP
= Growth of gross output
= Growth of labor
= Growth of capital
= Growth of intermediate inputs
α = Share of labor cost in output
β = Share of capital cost in output
γ = Share of intermediate inputs cost in output.