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A Criticism of the Concept and Measure for Total Factor Productivity

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  • Rossitsa Rangelova

Abstract

In the new or so called endogenous theory of growth is grounded on the concept of a more precise measurement of technological progress. In connection to this a critical assessment is made of the measure of total factor productivity (TFP) from a current position, which is in the grounds in the neoclassical model of economic growth. Analyzed is the nature of this measure with the purpose of showing the unrealistic basis on which the concept is formed. Examined are the theoretical and applied weaknesses of TFP.

Suggested Citation

  • Rossitsa Rangelova, 2008. "A Criticism of the Concept and Measure for Total Factor Productivity," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 30-49.
    • Handle: RePEc:bas:econth:y:2008:i:3:p:30-49
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    References listed on IDEAS

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    Cited by:

    1. Garabed Minassian, 2008. "Is the Bulgarian Economy Overheating?," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-29.
    2. Dimitar Zlatinov & Ilia Atanasov, 2021. "Absolute and Conditional Convergence: A Story about Convergence Clubs and Divergence in the EU," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 39-55.

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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