We construct a measure of aggregate technology change, controlling for imperfect competition, varying utilization of … capital and labor, and aggregation effects. On impact, when technology improves, input use falls sharply, and output may fall … frictionless dynamic general equilibrium models, which generally predict that technology improvements are expansionary, with inputs …

Aggregate productivity and aggregate technology are meaningful but distinct concepts. We show that a slightly …-modified Solow productivity residual measures changes in economic welfare, even when productivity and technology differ because of …-technological gaps between productivity and technology, gaps reflecting imperfections and frictions in output and factor markets …