The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Growth Accounting

  • Francesco Caselli
Reference work entry


Growth accounting consists of a set of calculations resulting in a measure of output growth, a measure of input growth, and their difference, most commonly referred to as total factor productivity (TFP) growth. It can be performed at the level of the plant, firm, industry, or aggregate economy. This article discusses the theoretical interpretation of the growth-accounting exercise, problems of measurement, and main empirical results. It concludes with a (very selective) history of the field.


Growth accounting Input–output analysis Measurement error National accounts Production functions Research and development Specification error Technical change Total factor productivity Vintage capital 

JEL Classifications

D4 D10 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Francesco Caselli
    • 1
  1. 1.