DEFINITION of 'Growth Accounting'

A method whereby a set of economic techniques or theories are used to determine what specific factor, or factors, contributed to an economy's growth.

BREAKING DOWN 'Growth Accounting'

Growth accounting allows one to examine the different aspects of growth: production per worker, technology, and savings, to determine which factor most likely created the increase in real GDP.

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    Find out why the factors of production are critical for real economic growth, where wages rise and consumer goods costs fall ... Read Answer >>
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    Understand what neoclassical growth theory is and how the ideology come about. Learn how the neoclassical growth theory predict ... Read Answer >>
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