Growth accounting
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A method used to determine the contribution of each factor of production to the growth output. Any growth unexplained by factor growth is viewed as attributable to technicaal progress.
The Solow residual is the part of growth that cannot be attributed to growth in the stock of capital or labour. This can be interpreted as the underlying growth in productivity due to technical progress.
Reference: Oxford Press Dictonary of Economics, 5th edt.
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