Effects of Change in Relative Prices in Existing Decompositions of Aggregate Labor Productivity Growth: A Resolution of the Aggregate Effect

• Main Author: Dumagan, Jesus C.
• Format: text
• Published: Animo Repository 2019
• Subjects: Labor productivity growth; GDP growth; relative prices; index number theory; Growth and Development; Labor Economics
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/30; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1032&context=res_aki
• Institution: De La Salle University

Diewert (2015) reworked Tang and Wang’s (2004) growth decomposition and claimed that: “Thus even if all industry labor productivity levels remain constant and all labor input shares remain constant, economy wide labor productivity growth can change due to changes in industry real output prices (ital...