Growth Accounting
Growth accounting is a production-function-based framework that decomposes the growth rate of aggregate output into the contributions of growth in measured inputs — typically capital and labour — and a residual that captures the growth in total factor productivity (TFP). Building on Robert Solow's 1957 derivation and refined by Dale Jorgenson and Zvi Griliches in 1967, it weights each input's growth rate by its share of national income and attributes whatever output growth is left unexplained to improvements in productivity, technology, and efficiency.
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- Solow, R. M. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39(3), 312–320. · DOI 10.2307/1926047
- Jorgenson, D. W., & Griliches, Z. (1967). The explanation of productivity change. The Review of Economic Studies, 34(3), 249–283. · DOI 10.2307/2296675
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