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A1435
Title: An econometric method for decomposing total-input productivity into input-specific productivities Authors:  Peter Zadrozny - Bureau of Labor Statistics (United States) [presenting]
Abstract: The aim is to develop and illustrate with aggregate U.S. data an econometric method for decomposing total-input productivity or the Solow residual into input-specific productivities or input-specific Solow residuals, that requires the same data as the Solow residual, in particular, requires no input-specific information. The method is based on an estimated Cobb-Douglas Marginal Production (CDMP) function. Commonly used production functions such as Cobb-Douglas and Constant Elasticity of Substitution (CES) production functions are special cases of the considerably more general CDMP function. Instead of the usual approach of explaining the Solow residual in terms of input-specific information, the proposed method suggests more directly explaining input-specific Solow residuals in terms of input-specific information, which should result in more accurate inferences on the sources of productivity change.