Book Review: The Aggregate Production Function and the Measurement of Technical Change: ‘Not Even Wrong’
Although commonly used in economic research, the concept of the aggregate production
function is extremely problematic. First, it lacks sound theoretical foundations, and second, its
use in applied work faces the insurmountable problem that the output and input data used are
linked through an accounting identity. This book discusses these flaws using examples from
well-known applications in the literature.
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