This study examines the empirical validity of the equivalence proposition on two productivity indexes, studied by Caves, Christensen, and Diewert (1982). Based on permutation tests, this study shows that the measured Malmquistindex and theSolowresidual areobservationally equivalentfor the U.S., Canada, France, Germany, and Italy. While the Solow residual is predominantly used in the existing macroeconomic studies, ?ndings suggest that the Malmquist index is empirically compatible to the Solow residual.
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number
CIRJE-F-354.
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James Albrecht & Susan Vroman, 2002.
"A Matching Model with Endogenous Skill Requirements,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 283-305, February.
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