Ítem
Acceso Abierto
If factor shares are not constant then we have a measurment problem. can we solve it?
Título de la revista
Autores
Zuleta, Hernando
Fecha
2009-08
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Editor
Universidad del Rosario
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Resumen
Abstract
Recent evidence show that factor shares, if properly measured, are far from constant.
Moreover, the shares of natural resources and raw labor seem to be negatively correlated with income per capita while the share of human and physical capital is
positively correlated with income per capita. Now, if factor shares are not constant
then (i) growth accounting exercises rely on a false assumption and (ii) there is a
measurement problem. The effect that change
s in factor shares ha
ve on output depend
on the relative abundance of factors and, fo
r this reason, it is necessary to have
correct measures. We propose an empiri
cal methodology to solve the measurement
issue and estimate TFP growth.
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Keywords
Factor Shares , Production Function , Measurement
