Solow residual present for economic growth theory

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The record of economic growth over the past century does not represent the steady state described or predicted in the Solow growth model. Explain what the “Solow residual” is and how it is used to account for the long-term improvement in output per person in industrialized countries. What problem does the “Solow residual” present for economic growth theory?

Reference no: EM13976903

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