New method predicts economic growth and investment efficiency with precision.
The article introduces a new way to measure productivity and investment efficiency in an economy. Researchers use a special function to estimate how much economic growth comes from technology improvements versus capital investments. They use a model called Verhulst's S-curve to make predictions about future economic trends. The function they create considers all factors influencing economic growth, not just capital investments. The researchers measure the accuracy of their predictions using a criterion called MAPE.