Appendix A - Basic Growth-Accounting Methodology
Appendix A - Basic Growth-Accounting Methodology
The empirical relationship used to estimate growth of multifactor productivity by the basic growth-accounting methodology is shown below:
![uppercase delta of uppercase T over uppercase T = uppercase delta of uppercase Q over uppercase Q minus [(lowercase alpha of delta of Labor over Labor) plus (lowercase beta of delta of Capital over Capital) plus (lowercase gamma of uppercase delta of Intermediate Inputs over Intermediate Inputs)]](../images/appa_equation.gif){kind=small}
Where:
α = Share of labor cost in output
β = Share of capital cost in output
γ = Share of intermediate inputs cost in output.