Abstract
We introduce well-known microeconomics
productivity measures in Solow models in discrete time
or continuous time by adopting a Luenberger-type
approach. In each framework, we derive the
productivity indicators and the dynamical paths.
Firstly, we show that the expression of the productivity
indicators is similar to the well-known Solow residuals,
allowing us to make an analogy between a firm’s
behaviour in a microeconomic setting and a country’s
behaviour in a macroeconomic setting. Secondly, we
demonstrate that the properties of the paths are
similar in both frameworks. Finally, we develop a new
class of distance functions, the exponential distance,
which facilitates the productivity analysis in these
models.
productivity measures in Solow models in discrete time
or continuous time by adopting a Luenberger-type
approach. In each framework, we derive the
productivity indicators and the dynamical paths.
Firstly, we show that the expression of the productivity
indicators is similar to the well-known Solow residuals,
allowing us to make an analogy between a firm’s
behaviour in a microeconomic setting and a country’s
behaviour in a macroeconomic setting. Secondly, we
demonstrate that the properties of the paths are
similar in both frameworks. Finally, we develop a new
class of distance functions, the exponential distance,
which facilitates the productivity analysis in these
models.
| Original language | English |
|---|---|
| Publication status | Published - Oct 2014 |