Appendix A
Basic Growth-Accounting Methodology

The empirical relationship used to estimate growth of multifactor productivity by the basic growth-accounting methodology is shown below:

uppercase delta of uppercase T over uppercase T = uppercase delta of uppercase Q over uppercase Q minus [(lowercase alpha of delta of Labor over Labor) plus (lowercase beta of delta of Capital over Capital) plus (lowercase gamma of uppercase delta of Intermediate Inputs over Intermediate Inputs)]

Where:

uppercase delta of uppercase T over uppercase T = Growth of MFP

uppercase delta of uppercase Q over uppercase Q = Growth of gross output

  uppercase delta of Labor over Labor = Growth of labor

  upeprcase delta of Capital over Capital = Growth of capital

  uppercase delta of Intermediate Inputs over Intermediate Inputs = Growth of intermediate inputs

α = Share of labor cost in output

β = Share of capital cost in output

γ = Share of intermediate inputs cost in output.




RITA's privacy policies and procedures do not necessarily apply to external web sites.
We suggest contacting these sites directly for information on their data collection and distribution policies.