Estimation of the Contribution of Intensive Factors of Economic Growth of the USA

DOI

10.2991/iscfec-18.2019.273How to use a DOI?

Keywords

economic growth, the USA, production functions, technical progress, the factors contribution, the output increase

Abstract

A difficult problem of estimation of the effectiveness of alternative options exists when choosing the direction of development of the national economy. To solve this problem, the author worked out a new tool in the form of a modified production function (PF) with variable parameters, based on the hypothesis of the variability of the rate of economic growth due to technical progress. Using modified PF lets reduce to a common base year the source data and estimate the PF for non-homogeneity periods which have both the periods of growth and decline. In the analysis, interest is not represented by the average annual contribution of production factors to product growth, but by the direct contribution of variable factors to product growth. The same result can be achieved both due to the extensive growth of production factors, and due to their qualitative growth. The developed by author tool lets evaluate intensive production factors contribution to output increase and determine the efficiency of development of the national economy. Verification of developed approach is shown by the example of the economic development of the USA. The development of the economy of the U.S. was predominantly intensive. Modified PF is universal, because under certain conditions, it is transformed into traditional static Cobb-Douglas’ PF and Tinbergen’s dynamic function.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - De En MOON
PY  - 2019/01
DA  - 2019/01
TI  - Estimation of the Contribution of Intensive Factors of Economic Growth of the USA
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2018)
PB  - Atlantis Press
SP  - 1209
EP  - 1213
SN  - 2352-5428
UR  - https://doi.org/10.2991/iscfec-18.2019.273
DO  - 10.2991/iscfec-18.2019.273
ID  - MOON2019/01
ER  -