<p>"Solow's Growth Accounting"</p>

<p>A first pass idea is what MIT's Bob Solow proposed many decades ago: to do a growth accounting exercise. You'd like to know how much physical capital changed and how much human capital changed and then with some assumptions or estimation of the relative importance of each of these then estimate how much total factor productivity changes. One way to do this is by running a regression of (log) output on (log) human capital, and (log) physical capital, for data from both the US and Sweden. The errors are the "total factor productivty" component or "Solow residual"....</p>

CC BY-SA 3.0
2016-08-23T13:24:43.590Z
2016-08-23T13:24:43.590Z
Fix.B.
<p>I've be assigned a project on growth paradigms in US vs Sweden as part of my introductory course in econ. Can somebody please help me out with regression ideas? </p>

CC BY-SA 3.0
2016-08-23T12:49:31.173Z
Can you give us some of the variables you're thinking of first? Then we can critique.
VCG
<macroeconomics><microeconomics><econometrics><mathematical-economics><labor-economics>
Studying growth in US and Sweden, what variables should I watch out for in a regression?
VivianDarkbloom
# Studying growth in US and Sweden, what variables should I watch out for in a regression?

(Asked by: username_0 on 2016-08-23)

I've be assigned a project on growth paradigms in US vs Sweden as part of my introductory course in econ. Can somebody please help me out with regression ideas?

**Tags:** macroeconomics, microeconomics, econometrics, mathematical-economics, labor-economics
> **Comments:**
> **username_1**: Can you give us some of the variables you're thinking of first? Then we can critique.  

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## 1 answers

### Answer by username_2 on 2016-08-23. Score: 0 | Accepted answer

"Solow's Growth Accounting"

A first pass idea is what MIT's Bob Solow proposed many decades ago: to do a growth accounting exercise. You'd like to know how much physical capital changed and how much human capital changed and then with some assumptions or estimation of the relative importance of each of these then estimate how much total factor productivity changes. One way to do this is by running a regression of (log) output on (log) human capital, and (log) physical capital, for data from both the US and Sweden. The errors are the "total factor productivty" component or "Solow residual"....


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