Debreu's Coefficient of Resource Utilization, the Solow Residual and TPF: The Connection by Leontief Preferences

T. Ten Raa

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Abstract

Debreu s coefficient of resource utilization is freed from individual data requirements.The procedure is shown to be equivalent to the imposition of Leontief preferences.The rate of growth of the modified Debreu coefficient and the Solow residual are shown to add up to TFP growth.This decomposition is the neoclassical counterpart to the frontier analytic decomposition of productivity growth into technical change and efficiency change.The terms can now be broken down by sector as well as by factor input.
Original languageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages27
Volume2003-111
Publication statusPublished - 2003

Publication series

NameCentER Discussion Paper
Volume2003-111

Keywords

  • efficiency
  • productivity
  • growth
  • technological change

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    Ten Raa, T. (2003). Debreu's Coefficient of Resource Utilization, the Solow Residual and TPF: The Connection by Leontief Preferences. (CentER Discussion Paper; Vol. 2003-111). Macroeconomics.