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Seoul Journal of Economics - Vol. 35 , No. 2

[ Article ]
Seoul Journal of Economics - Vol. 35, No. 2, pp. 117-130
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 31 May 2022
Received 07 Jun 2021 Revised 15 Apr 2022 Accepted 30 Apr 2022
DOI: https://doi.org/10.22904/sje.2022.35.2.001

The Deviation Terms in the Decomposition of Aggregate Productivity Growth
Le Li ; Simona Settepanella
Le Li (Corresponding author), Associate Professor, School of Economics, Guangzhou College of Commerce, Guangzhou, China, Tel: +86-020-3297-1191 (lile7k@gmail.com)
Simona Settepanella, Assistant Professor, Department of Economics and Statistics, University of Turin, Turin, Italy, Tel: +39-11-670-4406 (simona.settepanella@unito.it)

Funding Information ▼

JEL Classification: O47


Abstract

In the decomposition of aggregate productivity growth, corresponding components are generally indexed according to the deviation of individual-level productivity from aggregate productivity. This paper provides an alternative perspective and points out that this decomposition method seems more suitable for studying change in relative aggregate productivity growth than for aggregate productivity growth when a deviation term is adopted.


Keywords: Growth decomposition, Aggregate productivity, Deviation term, Within and between effects

Acknowledgments

This research is supported by the Department of Education of Guangdong Province’s Key Discipline Research Enhancement Project (2021ZDJS117). Le Li thanks the Japan Society for the Promotion of Science for the support when he worked as a JSPS International Research Fellow (P18759) between 2018 and 2020. We thank Marco Grazzi for his comments.


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