factor productivity (TFP) and by the capital stock per capita. These variables su¢ ce to calculate welfare changes within a …

total factor productivity (TFP) and by the capital stock per capita. These variables suffice to calculate welfare changes …

, the change in welfare is summarized by (the present value of) the Solow productivity residual and by the growth rate of … the capital stock per capita. We also show that productivity and the capital stock suffice to calculate differences in …

, the change in welfare is summarized by (the present value of) the Solow productivity residual and by the growth rate of … the capital stock per capita. We also show that productivity and the capital stock suffice to calculate differences in …

. To a first order, welfare is summarized by total factor productivity and by the capital stock per capita. These variables … total factor productivity is constructed using domestic absorption, instead of gross domestic product, as the measure of … output. It also requires that total factor productivity be constructed with prices and quantities as perceived by consumers …

values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility … (industries or firms) to aggregate welfare using readily available TFP data. Based on this finding, we compute firm and industry … contributions to welfare for a set of European OECD countries (Belgium, France, Great Britain, Italy, Spain), using industry …