GthAct1_class - GROWTH ACCOUNTING Introduction Terry Roe Contents 1 Introduction 1.1 Motivation 1 1.2 Motivation 2 1.3 Notes on the IBRD\"Not

GthAct1_class - GROWTH ACCOUNTING Introduction Terry Roe...

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GROWTH ACCOUNTING: Introduction Terry Roe October 23, 2013 Contents 1 Introduction 3 1.1 Motivation 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.2 Motivation 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.3 Notes on the IBRD "Notes" article . . . . . . . . . . . . . . . 6 2 Extensions 9 2.1 Nominal and real GDP . . . . . . . . . . . . . . . . . . . . . . 10 2.2 Intermediate factors of production (see appendix) . . . . . . . 11 2.3 The "dual" approach to growth accounting . . . . . . . . . . . 13 2.4 Labor productivity . . . . . . . . . . . . . . . . . . . . . . . . 16 2.5 Contributions to growth . . . . . . . . . . . . . . . . . . . . . 16 3 Measurement of capital stock 18 3.1 Method I: often used but not desirable . . . . . . . . . . . . . 18 3.2 Method II: More recent . . . . . . . . . . . . . . . . . . . . . . 21 4 Appendix 23 4.1 Growth acct. with CES tech. . . . . . . . . . . . . . . . . . . 23 4.2 Endogenous growth and TFP . . . . . . . . . . . . . . . . . . 25 4.3 Input quality . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 4.4 Note on Hall and Jones . . . . . . . . . . . . . . . . . . . . . . 27 4.5 Homework: growth accounting:forthcoming . . . . . . . . . . . 32 1
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GROWTH ACCOUNTING Arizala, F., E Cavallo and A Galindo. Financial Development and TFP Growth: Cross-Country and Industry-Level Evidence , Inter-American Devel- opment Bank, June 2009 Bernard, Andrew, and Charles I. Jones Productivity Across Industries and Countries: Time Series Theory and Evidence, Rev. of Econ. & Stat., Vol 78, Issue 1(Feb. 1996):135-46 Barro, R.J. and Sala-i-Martin. Chapter 10: Growth Accounting , Eco- nomic Growth, Second Edition, 2004:434-460 Carlaw, Kenneth, I. and Richard G. Lipsey. " Productivity, Technology and Economic Growth: What is the Relationship ", in George, Donald A. R, Less Oxley and Kenneth I. Carlaw Eds. Surveys In Economic Growth: Theory and Emprics, Blackwell, 2004. Dekle, R. and G. Vandenbroucke (2010). Whither Chinese Growth? A Sectoral Growth Accounting Approach. Review of Development Economics 14(3):487-498. Fanjzylber, Pablo and Daniel Lederman, Economic Reforms and Total Factor Productivity Growth in latin America and the Caribbean , 1950-95: An Empirical Note, IBRD, 1998 Gust, Christopher and Gabaix, X (2011) The Granular Origins of Aggre- gate Fluctuations, Econometrica, Vol 79(3):693-7332 Gopinath, M and T. Roe (1996). Sources of Growth in U.S. GDP and Economy-Wide Linkages to the Agricultural Sector. Journal of Agricultural and Resource Economcis 21(2):325-340. Hall, Robert and Charles Jones Why Do Some Countries Produce So Much More Output Per Worker Than Others?, QJE, (Feb.1999),83-116 Hofman, A. A. (2000). Standardised capital stock estimates in latin America: a 1950-94 update. Cambridge Journal of Economics, 24:45-86. Hulten, C. R. (1978) The Review of Economic Studies, vol. 45(3):511-518 2
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° = Hulten, Charles R. Growth Accounting , NBER Working Paper 15341, Sept. 2009 ° = Jones, C. I. (2011) Intermediate Goods and Weak Links: A Theory of Economic Development, American Economic Journal: Macroeconomics, Vol. 3(2), April:1-28 Marquez, Jaime . Productivity Developments Abroad , Federal Reserve Bul- letin, October, 2000 ° = Martin, W., and D. Mitra. (2001). Productivity Growth and Cnvergence in Agriculture versus Manufacturing. Economic Development and Cultural Change, Univ. of Chicago: 404-422 Senhadji, A. (1999). Sources of Economic Growth: An Extensive Growth Accounting Exercise. IMF, WP/99/77 W°±mann, Ludger," Specifying Human Capital" , in George, Donald A. R, Less Oxley and Kenneth I. Carlaw Eds. Surveys In Economic Growth: Theory and Empirics, Blackwell, 2004.
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