We prove that the change in welfare of a representative consumer is summarized by thecurrent and expected future values of the standard Solow productivity residual. Theequivalence holds if the representative household maximizes utility while taking pricesparametrically. This result justifies TFP...

We prove that the change in welfare of a representative consumer is summarized by the current and expected future values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility while taking prices parametrically. This result justifies...

We prove that the change in welfare of a representative consumer is summarized by the current and expected future values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility while taking prices parametrically. This result justifies...