Wherever tfp goes economic growth occurs hard to

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Unformatted text preview: nts Elasticity of capital, how much you can switch out or in capital in your economy. gY=gA + eKgK + eLgL Allows you to see whether it comes from capital, labor, or technology Everything that isn’t capital or labor goes into gA Could it be TFP? Wherever TFP goes, economic growth occurs Hard to emasure: SLIDES HAVE MEASUREMENT CHALLENGES If you wanted to measure how much capital stock changed from one year to the next, we know how much is spent on new capital because most governments represent that as INVESTMENT (that’s new...
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This document was uploaded on 03/28/2014 for the course INAF 252 at Georgetown.

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