Solow residual
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Solow residual is the growth in total factor productivity, measured as the percentage change in output minus the percentage change in inputs, where the inputs are weighted by their factor shares. (Cf. total factor productivity.)
Definition
According to Macroeconomics by Mankiw (7th edition),
- Solow residual. The growth in total factor productivity, measured as the percentage change in output minus the percentage change in inputs, where the inputs are weighted by their factor shares. (Cf. total factor productivity.)
