Measuring productivity based on the reduction of produced capital to labor

Measuring productivity based on the reduction of produced capital to labor | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Measuring productivity based on the reduction of produced capital to labor Duyong Kang This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-3457382/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Noting that capital is a produced factor of production, this paper explores the measurement of productivity based on the reduction of capital to labor. Specifically, it examines two productivity indicators based on this approach: ‘the modified Solow residual’ (MSR) and ‘total labor productivity’ (TLP), defined as the quantity of output per unit input. The study finds that MSR is a more general indicator of the growth contribution of technological progress than the conventional Solow residual in that it provides accurate estimates of the growth contribution for all types of technological progress and reduces to the conventional Solow residual in the case of Hicks-neutral technological progress. TLP is found to provide a broader perspective on productivity as it encompasses the efficiency of factor allocation as well as the level of technology. This paper also estimates the MSR of the Korean economy and compares it with conventional Solow residual estimates. productivity measurement reduction of capital to labor modified Solow residual JEL O40 O47 Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-3457382","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":244810187,"identity":"035e94ab-63dc-4487-b385-24c9ee1ec954","order_by":0,"name":"Duyong Kang","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA2ElEQVRIiWNgGAWjYDCCA2wg0saADco3IFZLGlALM2laDgNVEquF70Za4ueCX+eN+dj7DzBXVDAYmzcQ0CJ5I+2w9My+22ZsPIcZGM+cYTCTOUBAi8GN9AZp3p7bNmwSyQyMjW0MNhKEHAbU0vybt+ecDZv8Y6CWf0RpSTsmzfPjgBmbBDNQSwODGUEtkmeepVnzNiQbs/EkGxxsOCZhTFAL3/E049s8f+wM57cffPiwocbGcAYhLQwCCQwMjG0Q9gEGBoJ2AAE/UB3DHyIUjoJRMApGwcgFALrWO4MaSNbbAAAAAElFTkSuQmCC","orcid":"","institution":"Korea Institute for Industrial Economics and Trade","correspondingAuthor":true,"submittingAuthor":false,"prefix":"","firstName":"Duyong","middleName":"","lastName":"Kang","suffix":""}],"badges":[],"createdAt":"2023-10-17 11:59:18","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-3457382/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-3457382/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":47374915,"identity":"cd5d2c03-a8e9-4745-b47a-13a3606b7ad3","added_by":"auto","created_at":"2023-11-30 14:37:54","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":421222,"visible":true,"origin":"","legend":"","description":"","filename":"Newapproachtoproductivity2310.pdf","url":"https://assets-eu.researchsquare.com/files/rs-3457382/v1_covered_2a0de8c2-48a8-4ce0-bbdb-963cdb8cbdc0.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Measuring productivity based on the reduction of produced capital to labor","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"productivity, measurement, reduction of capital to labor, modified Solow residual, JEL O40, O47","lastPublishedDoi":"10.21203/rs.3.rs-3457382/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-3457382/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eNoting that capital is a produced factor of production, this paper explores the measurement of productivity based on the reduction of capital to labor. 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