Abstract :
We show how growth accounting can be performed in the classic vintage capital model of Solow [Solow, R., 1956. Technical change and the aggregate production function, Review of Economics and Statistics]. The growth in real output can be decomposed into the labor share times the growth of labor plus the gross quasi-rents on capital times the saving rate. We show that data easily obtained from conventional national income accounts can be used to perform this growth accounting.
