Dynamic Growth Rate of U.S. Economy

Hossain, Md. Mobarak (2018): Dynamic Growth Rate of U.S. Economy.

Abstract

This paper reports the estimates of the dynamic growth rate of U.S. economy using exponential growth model, Cob-Douglas production function with a regression framework. The estimates indicates that 100% output growth is broken down into 58% technology growth, 19.10% labor growth, and 22.90% capital growth. Growth rates of U.S. production, capital, and employment are decreasing by 0.4%, 0.6%, and 0.01% respectively for each additional year regardless of recession while growth rate of technological changes in U.S. economy has been changing in a systematic way. It also shows that forecasted growth rate of U.S. output with restricted elasticity is lower than that with unrestricted elasticity.

• Item Type: MPRA Paper
• Language: English
• Keywords: Elasticity, Cobb-Douglas production function, exponential growth model.
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy ; Stabilization ; Treasury Policy

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