Empty sources of growth accounting, and empirical replacements à la Kaldor and Goodwin with some beef

Real wages and labor-saving technical change: evidence from a panel of manufacturing industries in mature and labor-surplus economies

“…The literature on directed technical change has devoted less attention to growth regimes constrained by aggregate demand. Naastepad (2006), Rada and Taylor (2006), Rezai (2012), and Sasaki (2013) integrate elements of induced technical change into demand-constrained growth models of the Kacleckian tradition. These papers suggest a number of possible outcomes depending on behavioral relationships and parameter values; but a steady state with constant factor shares and a transitional dynamics described by Goodwin-type cycles are a possibility 7 .…”

The New Normal: Demand, Secular Stagnation and the Vanishing Middle-Class

“…More recently, Jones (2015: 10) found that TFP growth accounts for about 80% of economic growth in the United States during 1948-2013. Fortunately, TFP growth may be less of a mystery than Furman and others presume because there are two ways in which it can be unambiguously measured-using real observable data. The first approach to direct measurement of TFP growth is as follows (Rada and Taylor 2006). Using definitions k ¼x ÀL and ĵ ¼x ÀK, TFP growth in (6#) can be rewritten as:…”

Development Questions for 25 Years

“…Finally, the growth rate of employment is equal to the difference between the growth rates of output and productivity. Following Rada and Taylor (2004), this observation means that one can plot 'employment growth contours' with slopes of 45 degrees in a diagram with the output growth rate ( X ) on the horizontal axis and the labour productivity growth rate ( ) L ξ on the vertical. Each line shows combinations of the two rates that hold the employment growth rate (…”

“…7 Demand-driven growth models are presented in Rada and Taylor (2004). External constraints can be modeled in a gap model framework (Taylor 1994), taking into account foreign aid, capital movements, and shifts in the terms of trade.…”