Basu, Susanto; Pascali, Luigi; Schiantarelli, Fabio; … - Barcelona Graduate School of Economics (Barcelona GSE) - 2012
We show that the welfare of a representative consumer can be related to observable aggregate data. To a first order …, the change in welfare is summarized by (the present value of) the Solow productivity residual and by the growth rate of … welfare across countries, with both variables computed as log level deviations from a reference country. These results hold …