Income Disparities Revealed: How Growth Accounting Shapes Our Future
The article discusses how incomes per person have increased over time, but not evenly. Growth accounting is a tool used to understand this and predict future improvements in living standards. The model breaks down economic growth into capital and productivity components, showing how they interact and change. New methods for analyzing productivity at a detailed level are also explored. The debate over whether net or gross output is a better measure of economic growth is addressed.