The Solow residual, Domar aggregation, and inefficiency: a synthesis of TFP measures

The Solow residual, Domar aggregation, and inefficiency: a synthesis of TFP measures

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Article ID: iaor20116975
Volume: 36
Issue: 1
Start Page Number: 71
End Page Number: 77
Publication Date: Aug 2011
Journal: Journal of Productivity Analysis
Authors: ,
Keywords: statistics: data envelopment analysis
Abstract:

We consolidate and interrelate the four main approaches to the measurement and decomposition of total factor productivity growth, namely Solow’s residual analysis, the index number approach, Data Envelopment Analysis, and Domar aggregation. Two new results link the general technology TFP growth measure to the industry Solow residuals and inefficiency.

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