The fallacy in productivity decomposition
نویسندگان
چکیده
Abstract This paper argues that the typical practice of performing growth decompositions based on log-transformed productivity values induces fallacious conclusions: using logs may lead to an inaccurate aggregate rate, description micro sources growth, or both. We identify mathematical this log-induced fallacy in decomposition and analytically demonstrate questionable reliability log results. Using firm-level data from French manufacturing sector during 2009–2018 period, we empirically show magnitude distortions is substantial. find around 60–80% four-digit industry results are prone mismeasurement depending definition accurate measures. further significant correlations with commonly deployed characteristics, indicating, among other things, less competitive industries more distortions. Evidently, these also affect validity studies investigating characteristics’ role growth.
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ژورنال
عنوان ژورنال: Journal of Evolutionary Economics
سال: 2023
ISSN: ['1432-1386', '0936-9937']
DOI: https://doi.org/10.1007/s00191-023-00816-8