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Aggregate production functions, growth economics, and the part-time tyranny of the identity: a reply to Felipe and McCombie

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  • Jonathan Temple

Abstract

A recent paper by Jesus Felipe and John McCombie argues that I have understated the importance of the value added identity for conventional estimates of production relationships. This reply seeks to clarify the areas of agreement and disagreement. It suggests that the problems raised by the accounting identity are genuine and deserve to be more widely known, but Felipe and McCombie have sometimes exaggerated the scope of the argument.

Suggested Citation

  • Jonathan Temple, 2010. "Aggregate production functions, growth economics, and the part-time tyranny of the identity: a reply to Felipe and McCombie," International Review of Applied Economics, Taylor & Francis Journals, vol. 24(6), pages 685-692.
  • Handle: RePEc:taf:irapec:v:24:y:2010:i:6:p:685-692
    DOI: 10.1080/02692171.2010.511454
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    1. Lo, Dic & Hong, Fuhai & Li, Guicai, 2016. "Assessing the role of inward foreign direct investment in Chinese economic development, 1990–2007: Towards a synthesis of alternative views," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 107-120.

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