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Variable factor shares, measurement and growth accounting

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  • Zuleta, Hernando

Abstract

Recent evidence shows that factor shares are not constant. Consequently, growth accounting exercises rely on a false assumption and a measurement problem arises. We propose an empirical methodology to solve the measurement issue and estimate TFP growth.

Suggested Citation

  • Zuleta, Hernando, 2012. "Variable factor shares, measurement and growth accounting," Economics Letters, Elsevier, vol. 114(1), pages 91-93.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:1:p:91-93
    DOI: 10.1016/j.econlet.2011.09.026
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Antonelli,Cristiano, 2013. "The economics of technological congruence," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201304, University of Turin.
    2. Hernando Zuleta, 2012. "Seasonal Fluctuations And Economic Growth," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(4), pages 1-27, December.
    3. Brad Sturgill & Hernando Zuleta, 2017. "Variable factor shares and the index number problem: a generalization. Abstract Factor shares vary over time and across countries, so incorporating variable factor shares into growth and development a," Economics Bulletin, AccessEcon, vol. 37(1), pages 30-37.
    4. Hernando Zuleta, 2015. "Factor shares, inequality, and capital flows," Southern Economic Journal, John Wiley & Sons, vol. 82(2), pages 647-667, October.
    5. Hernando Zuleta, 2015. "Getting Growth Accounting Right," Documentos CEDE 13814, Universidad de los Andes, Facultad de Economía, CEDE.
    6. Cristiano Antonelli & Christophe Feder, 2020. "Total factor productivity, catch-up and technological congruence in Italy, 1861–2010," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 1171-1194, September.
    7. Cristiano Antonelli & Christophe Feder, 2021. "Knowledge appropriability and directed technological change: the Schumpeterian creative response in global markets," The Journal of Technology Transfer, Springer, vol. 46(3), pages 686-700, June.
    8. Hernando Zuleta & Daniel Gamboa, 2019. "Factor reallocation and growth: what if there are labor saving innovations?," Documentos CEDE 17199, Universidad de los Andes, Facultad de Economía, CEDE.
    9. Ivan D. Trofimov, 2019. "Stability of Labour Shares: Evidence from OECD Economies," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 17(1), pages 57-89.
    10. Sturgill, Brad, 2014. "Back to the basics: Revisiting the development accounting methodology," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 52-68.
    11. Tiago Sequeira & Hugo Morão, 2020. "Growth accounting and regressions: New approach and results," International Economics, CEPII research center, issue 162, pages 67-79.
    12. Antonelli, Cristiano & Feder, Christophe & Quatraro, Francesco, 2018. "Directed Technological Change and Technological Congruence: A New Framework for the Smart Specialization Strategy," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201805, University of Turin.
    13. Jeffrey D. Sachs & Laurence J. Kotlikoff, 2012. "Smart Machines and Long-Term Misery," NBER Working Papers 18629, National Bureau of Economic Research, Inc.
    14. Yinhao Wu & Enru Wang & Changhong Miao, 2019. "Fertilizer Use in China: The Role of Agricultural Support Policies," Sustainability, MDPI, vol. 11(16), pages 1-23, August.
    15. Feder, Christophe, 2018. "The effects of disruptive innovations on productivity," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 186-193.
    16. Antonelli, Cristiano, 2016. "Technological congruence and the economic complexity of technological change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 15-24.
    17. Brad Sturgill & Hernando Zuleta, 2016. "Variable Factor Shares and the Index Number Problem: A Generalization," Documentos CEDE 15038, Universidad de los Andes, Facultad de Economía, CEDE.
    18. Samuele Ialenti & Guido Pialli, 2024. "The increase in the elasticity of substitution between capital and labour: a repeated cross-country investigation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 33(3), pages 380-400, April.
    19. Cristiano Antonelli & Christophe Feder, 2021. "Schumpeterian loops in international trade: the evidence of the oecd countries," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 799-820, July.
    20. Hernando Zuleta & Andrés Zambrano, 2018. "Neutral or factor saving innovations?," Documentos CEDE 17134, Universidad de los Andes, Facultad de Economía, CEDE.
    21. Lin, Boqiang & Chen, Xing, 2020. "How technological progress affects input substitution and energy efficiency in China: A case of the non-ferrous metals industry," Energy, Elsevier, vol. 206(C).

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    More about this item

    Keywords

    Factor shares; Production function; Measurement;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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