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Is 'the Solow Residual' a term of art amongst the RBC advocates?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Aug 4th, 2013 at 01:52:58 PM EST
[ Parent ]
The Solow residual is a term of art among a class of utility theoretic economic growth models. Technological progress is everything in productivity growth you can't account for after you have found all the factors correlated with productivity growth and have estimated their contribution.

Its an admission that utility theoretic growth modelling can't explain the most important long term factor in economic growth.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Mon Aug 5th, 2013 at 10:35:27 PM EST
[ Parent ]
What Bruce said.  The term pre-dates RBC.  The Solow growth model has been around since the '50s, whereas RBC came around in the '80s.

RBC theorists just tend to be wedded to it.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Tue Aug 6th, 2013 at 07:36:35 AM EST
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