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What is Theory of Total Factor Productivity about?

This paper evaluates whether differences in physical and intangible capital can account for large international income differences. The author finds that capital differences cannot fully explain the differences and that total factor productivity is more important. The paper argues that a theory of total factor productivity is needed to understand why productivity differs across countries and over time beyond differences in technical knowledge. Such a theory would explain differences in how technical knowled

Author

Faust Sántxez

Language

EN