Methods for Investigating Growth
8 Pages Posted: 13 Jun 2013
Date Written: May 22, 2013
Growth theory has tended to find its data in national accounts. These show flows alone, including capital growth (net investment), but no measure of the capital denominator itself. A proved technique is to compare changes in investment to changes in output after a lag. This study illustrates a separate method from simultaneous percent rates rather than lagged flows. It can be applied to security market series, where capital is transparent as market cap, or to national accounts where capital is proxied from separate sources. It allows provision for growth in human capital as well as physical capital.
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