Critique of The Measurement in Rapidly Developing Economies
Rapidly expanding countries (catching up after a crisis or trade liberalization) tend to have a rapid turn-over in technologies as they accumulate capital. It has been suggested that this will tend to make it harder to gain experience with the available technologies and that a zero Solow residual in these cases actually indicates rising labour productivity. In this theory, the fact that A (labour output productivity) is not falling as new skills become essential indicates that the labour force is capable of adapting, and is likely to have its productivity growth underestimated by the residual—This idea is linked to "learning by doing".
Read more about this topic: Solow Residual
Famous quotes containing the words critique of, critique, measurement, rapidly and/or developing:
“Wagner’s art is the most sensational self-portrayal and self- critique of German nature that it is possible to conceive.”
—Thomas Mann (1875–1955)
“Wagner’s art is the most sensational self-portrayal and self- critique of German nature that it is possible to conceive.”
—Thomas Mann (1875–1955)
“That’s the great danger of sectarian opinions, they always accept the formulas of past events as useful for the measurement of future events and they never are, if you have high standards of accuracy.”
—John Dos Passos (1896–1970)
“What is the first thing that savage tribes accept from Europeans nowadays? Brandy and Christianity, the European narcotics.—And what is it that most rapidly leads to their destruction?—The European narcotics.”
—Friedrich Nietzsche (1844–1900)
“The hearts of Afro-American women are too warm and too large for race hatred. Long suffering has so chastened them that they are developing a special sense of sympathy for all who suffer and fail of justice.”
—Fannie Barrier Williams (1855–1944)