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On some relations between a continuous time Luenberger productivity indicator and the Solow model

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  • Walter Briec
  • Laurence Lasselle

Abstract

We introduce well‐known microeconomics productivity measures in Solow models in discrete time or continuous time by adopting a Luenberger‐type approach. In each framework, we derive the productivity indicators and the dynamical paths. First, we show that the expression of the productivity indicators are similar to the well‐known Solow residuals, allowing us to make an analogy between a firm's behavior in a microeconomic setting and a country's behavior in a macroeconomic setting. Second, we demonstrate that the properties of the paths are similar in both frameworks.

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  • Walter Briec & Laurence Lasselle, 2022. "On some relations between a continuous time Luenberger productivity indicator and the Solow model," Bulletin of Economic Research, Wiley Blackwell, vol. 74(2), pages 484-502, April.
    • Handle: RePEc:bla:buecrs:v:74:y:2022:i:2:p:484-502
    DOI: 10.1111/boer.12305
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