Consumption Growth Accounting
University of Groningen - Department of Economics
Olaf J. De Groot
DIW Berlin; Bocconi University
University of Groningen - Faculty of Economics
Review of Income and Wealth, Vol. 53, No. 3, pp. 422-439, September 2007
The methodology in this paper combines an input-output structural decomposition approach with the supply-side perspective of mainstream growth accounting. In explaining the intertemporal change in consumption per worker, three sets of effects are distinguished. First, contributions due to several types of technological changes are considered. Second, effects caused by changes in international trade are discerned. Third, composition effects that reflect structural shifts in demand (including changes in tastes) are quantified. As an empirical illustration, we analyze the developments in the U.K. between 1979 and 1990.
Number of Pages in PDF File: 18Accepted Paper Series
Date posted: August 31, 2007
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