Total Factor Productivity Estimation in Peru: Primal and Dual Approaches
Submitted by admin on 22 July 2014 - 12:40pm
Produced by:
Pontificia Universidad Católica del Perú
Available from:
May 2014
Topic:
Macroeconomics - Economic growth - Monetary Policy
Year:
2014
In this paper we estimate total factor productivity (TFP) growth for the Peruvian economy using the primal and dual methods for the period 2003 - 2012. According to the primal method, a procedure that uses the Solow residual as an indicator of productivity, TFP grew at an average annual rate of 1.6%, adjusted for the quality and usage of the factors of production. According to the dual method, a procedure that considers estimations of the marginal productivities of the factor of production, TFP grew at an annual rate of 1.7%.
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