Growth accounting with misallocation
Subtitle: or, doing less with more in Singapore
By: John Fernald, Brent Neiman
Contributors: Neiman, Brent; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16043; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16043.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] :
Description: "We derive aggregate growth-accounting implications for a two-sector economy with heterogeneous capital subsidies and monopoly power.  In this economy, measures of total factor productivity (TFP) growth in terms of quantities (the primal) and real factor prices (the dual) can diverge from each other as well as from true technology growth.  These distortions potentially give rise to dynamic reallocation effects that imply that change in technology needs to be measured from the bottom up rather than the top down.  We show an example, for Singapore, of how incomplete data can be used to obtain estimates of aggregate and sectoral technology growth as well as reallocation effects.  We also apply our framework to reconcile divergent TFP estimates in Singapore and to resolve other empirical puzzles regarding Asian development"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/15/2010.

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