Measuring Economic Growth and Productivity: Foundations, KLEMS Production Models, and Extensions

A Foundational Guide to Measuring Economic Growth

How do we measure what makes economies grow? This edited volume tackles that question head-on, bringing together leading economists and statisticians to examine the foundations of growth and productivity analysis. Edited by Barbara M. Fraumeni, the book provides a comprehensive overview of KLEMS (capital, labor, energy, materials, and services) production models and their extensions, offering both theoretical insights and empirical applications.

Inside the Volume 📊

Spanning 534 pages, the book is structured into three main parts. It begins with the foundations of economic growth, discussing how growth is achieved and the evolution of measurement techniques. The core of the volume focuses on KLEMS production models, with chapters covering all G7 countries, all E7 countries, the EU-12, plus Australia, Chile, Colombia, Norway, South Korea, and Taiwan. A final set of chapters extends the analysis to topics such as digital product prices, carbon taxes, welfare measurement, and human capital.

Key Themes and Approaches

• Growth Accounting: Learn how researchers decompose growth into contributions from capital, labor, energy, materials, and services.
• Industry-Level Analysis: See how different industries have driven economic change, from mining to information technology.
• Global Comparisons: Compare productivity performance across major economies, including the United States, China, India, Japan, and European nations.
• Policy Applications: Explore how empirical results inform policy on R&D investment, carbon taxation, and welfare measurement.

Who Will Benefit

This book is designed for graduate students and researchers working on growth and productivity, as well as policymakers who need to understand how empirical results are produced. It assumes a familiarity with economic concepts and quantitative methods, making it suitable for advanced study and professional reference.

A Tribute to Dale W. Jorgenson

The volume is dedicated to Dale W. Jorgenson, whose pioneering work on KLEMS production models has influenced generations of economists. His legacy is reflected throughout the chapters, which build on and extend his research agenda.

Why It Matters

As economies face slow productivity growth, digital transformation, and global value chains, accurate measurement becomes increasingly important. This collection offers the tools and perspectives needed to understand these challenges, making it a valuable addition to any economics library.