3 votes
Accepted

Growth Accounting with variable factor shares

Interesting question. In effect, while factor shares were thought to have remained fairly stable over a long time (the first of the Kaldor's facts), more recently they have varied, particularly in the ...
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  • 8,437
2 votes
Accepted

What's a « 1-Ratio» ? From a text on Capital's share of GDP

I'm pretty sure he means "1 minus the labour share percentage", i.e. he's estimating the capital share of GDP as the proportion of GDP not going to labour. It's not typeset well, but he has used an ...
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  • 1,346
2 votes

Discrete returns versus log-returns

I would say people usually use log-returns for continuous data (although no data is really continuous, not even tick data). And discrete returns when your data is discrete. In the case of GDP, you ...
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2 votes

Measuring growth rate when values are negative

For negative values alone you can define relative change as: $$\frac{X_t-X_{t-1}}{|X_{t-1}|}$$ This is quite common way to deal with rates of change when you have negative numbers. However, when the ...
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  • 41.3k
1 vote

Growth Accounting, capital-output approach

I think that the division by $y_t^\alpha$ is for the following specification (where technological progress is labour augmenting). $$ y_t = k_t^\alpha (Al_t)^{1 - \alpha}. $$ Taking logs gives: $$ \ln(...
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  • 8,672
1 vote

Maximizing units under a budget constraint and increasing costs

I think you are making this harder than this needs to be from a reasoning standpoint. Given a budget M, you are trying to maximize your total expenditure. You have just one input cost, being marginal ...
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  • 31

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