If factor shares are not constant then we have a measurment problem. can we solve it?
Recent evidence show that factor shares, if properly measured, are far from constant. Moreover, the shares of natural resources and raw labor seem to be negatively correlated with income per capita while the share of human and physical capital is positively correlated with income per capita. Now, if...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2009
- Institución:
- Universidad del Rosario
- Repositorio:
- Repositorio EdocUR - U. Rosario
- Idioma:
- spa
- OAI Identifier:
- oai:repository.urosario.edu.co:10336/11287
- Acceso en línea:
- https://doi.org/10.48713/10336_11287
http://repository.urosario.edu.co/handle/10336/11287
- Palabra clave:
- Economía
Factor Shares
Production Function
Measurement
Economía
Medición
Crecimiento económico
Acciones (Bolsa)
Aspectos económicos
- Rights
- License
- http://purl.org/coar/access_right/c_abf2
Summary: | Recent evidence show that factor shares, if properly measured, are far from constant. Moreover, the shares of natural resources and raw labor seem to be negatively correlated with income per capita while the share of human and physical capital is positively correlated with income per capita. Now, if factor shares are not constant then (i) growth accounting exercises rely on a false assumption and (ii) there is a measurement problem. The effect that change s in factor shares ha ve on output depend on the relative abundance of factors and, fo r this reason, it is necessary to have correct measures. We propose an empiri cal methodology to solve the measurement issue and estimate TFP growth. |
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