ABSTRACT
Any residually measured total factor productivity index confounds the productivity gains achieved from better inputs and greater organizational efficiency (movement toward the production function) with the output from process-related technological change (a shift in the production function). 27 Beginning with Denison [75], efforts were made to identify empirically factors underlying changes in an index such as A(t). In simplest terms, growth accounting is an attempt to remove from the A(t) residual all factors except a pure technological change component.
