Growth accounting with investment-specific technological progress: A discussion of two approaches
نویسندگان
چکیده
Two approaches taken to the embodiment question are compared and discussed: quantitative theory and traditional growth accounting. The two approaches give very different estimates for the contribution of investment-specific technological advance to economic growth. Therefore, the approach taken matters. It is argued that the measures used in traditional growth accounting to gauge the importance of investment-specific technological progress have little economic content, unlike the measure obtained from quantitative theory. r 2006 Elsevier B.V. All rights reserved. JEL classification: O41; O47
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