Growth accounting equations , Microeconomics

Assignment Help:

Growth Accounting Equations

Relating the total output produced to inputs, this method measures the relative differentials in contribution to growth by the different factors of production. The contribution of various factors of economic growth is assessed and measured in  this approach. Economic growth is defined in terms of national income. An account of national income is drawn in such a way as to balance it with the contributions of economic growth.

National income is normally measured in two ways:

(i) The total costs of all the factors employed to produce the given output,

(ii) The market prices of the commodities and services that are produced in a given year.

It is possible to consider an extension of the growth accounting technique with more variables considered. Such works come under what is called as ‘econometric modelling’. A ‘model’ is a simplified representation of reality that is used to explain or predict the interaction between (and among) the variables. Explanation provided can be through diagrams or equations while interpretations can be made in plain language.


Related Discussions:- Growth accounting equations

Explain total fixed and variable costs, Fixed costs are those which are ind...

Fixed costs are those which are independent of output that is they do not change with changes in output. These costs are a fixed amount which must be incurred by a firm in the shor

Explain endogenous growth theory, Problem 1: (a) Critically examine the...

Problem 1: (a) Critically examine the differences between the Neo-classical growth models and the endogenous growth theory. (b) Show the relevance of such models in explain

Describe customer-firm relationship, Question 1: "The rush of new and e...

Question 1: "The rush of new and existing enterprises to exploit the opportunities presented by the internet economy is giving rise to new business models". Discuss. Ques

Consumer demand analysis "utility", how does utility figure in the analysis...

how does utility figure in the analysis of consumer demand

Elasticity deman, use the concept of the income elasticity of demand to exp...

use the concept of the income elasticity of demand to explain the difference necessities, luxuries and inferior goods

Calculate price and average total cost atc, 1. Through graphs describe the ...

1. Through graphs describe the relationship between the price, P , and the average total cost, ATC , for a firm in perfect competition when it earns an economic profit; earns a n

Cost curves, With the aid of a diagram explain the long run average cost cu...

With the aid of a diagram explain the long run average cost curve and the influences upon it.

Define the adoption of economic institutional arrangement, Define the adopt...

Define the adoption of economic institutional arrangement in analytical frameworks. Adoption of Economic Institutional Arrangement: The third step for studying an economi

Coase theorem, Discuss the possible solutions for private solutions (Coase ...

Discuss the possible solutions for private solutions (Coase Theorem) Question 8: Demand: P=100-Q Supply: P=Q MEB= 10 Discuss the possibility of over or under allocations of reso

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd