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Solow Residual

The Solow residual is the portion of output growth that is not explained by the growth of measured inputs — capital and labour — after each input's growth is weighted by its share of national income. Introduced by Robert Solow in 1957, it is the empirical counterpart of total factor productivity (TFP) growth and is computed by subtraction rather than measured directly. Because it captures everything that raises output without raising measured inputs, it has been famously described as a 'measure of our ignorance': it labels what we cannot otherwise account for, lumping together genuine technical change, efficiency gains, and pure measurement error.

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Vyanzo

  1. 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
  2. Jorgenson, D. W., & Griliches, Z. (1967). The explanation of productivity change. The Review of Economic Studies, 34(3), 249–283. DOI: 10.2307/2296675

Jinsi ya kunukuu ukurasa huu

ScholarGate. (2026, June 22). Solow Residual (Total Factor Productivity Growth). ScholarGate. https://scholargate.app/sw/economics/solow-residual

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ScholarGateSolow Residual (Solow Residual (Total Factor Productivity Growth)). Imepatikana 2026-06-24 kutoka https://scholargate.app/sw/economics/solow-residual · Seti ya data: https://doi.org/10.5281/zenodo.20539026