# Questions tagged [growth-accounting]

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### In a 3 sector economy, calculate maximum possible share of one of the sectors over time if initial sectoral composition and annual growth rate given

In an economy, the agriculture, industrial and services sectors have initial shares of 50, 20 and 30 percent respectively in the total GDP. They also subsequently grow at the following constant annual ...
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### Growth Accounting, capital-output approach

In standard approach to growth accounting, you decompose $y_t = A_t f(k_t, l_t)$ into TFP, labor and capital components. In the capital-output approach, people make the argument that $A_t$ can also ...
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### Measuring growth rate when values are negative

I am studying nightlights data and trying to model cross-sectional convergence in nightlights in India. However data has some stray light corrections, which has made some of the measurements below ...
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### Maximizing units under a budget constraint and increasing costs

Consider two columns. Column A has total cost per day, Column B has units bought that day. The marginal cost of each unit is increasing because of limited supply. My goal is to estimate total ...
• 119
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### How to Calculate the productivity multiplier?

Given a Cobb Douglas $Y_t = A (K_t^\alpha L_t^{1-\alpha})$ $K_{t+1} = sY_t + (1-\delta) K_t$ How do we get the multiplier on productivity to be equal to $\frac{1}{1-\alpha}$? I understand ...
• 111
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### What's a « 1-Ratio» ? From a text on Capital's share of GDP

In this article, the writer talks about the «capital share, as a percent of GDP — here just 1 – labor share percentage» What's this 1-labour share percentage?
1 vote
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### Estimating Endogenous vs Exogenous growth models

Exogenous economic growth models (mostly those that take technological progress, or change in TFP as exogenous and random) are rather easy to estimate econometrically. But how about endogenous ...
• 151
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### Discrete returns versus log-returns

I read this link and it is very helpful. However, if log-returns are easier for time-aggregation, then why do economists work with discrete returns e.g. in GDP growth?
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1 vote
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### Sources of Growth and co-integration: production function approach

I am experimenting with time series data to gauge the importance of factors of production i.e. labour force, capital stock, energy, land, etc. in output growth. One venue I am looking into is the ...
• 2,010
Under the assumption of competitive markets, the usual growth accounting equation using Cobb-Douglass function is as follows: $\Delta Y/Y = \Delta A/A+w_l\Delta L/L+w_k\Delta K/K$ $Y$ is output $K$...