Eli Dourado Highlights Our Purified Solow Residual →

In our paper “Are Technology Improvements Contractionary?” Susanto Basu, John Fernald and I developed the “purified Solow residual” as a measure of technological change. When he was at the San Francisco Fed, John Fernald kept up-to-date a quarterly version of this measure. At the link on the title of this post, Eli Dourado displays the graph of the level of technology implied, labeled as “utilization-adjusted total factor productivity.” It is great to see how cleanly this measure shows the history of macroeconomic technological progress since 1948.