On some relations between a continuous time Luenberger productivity indicator and the Solow model

Abstract

We introduce well-known microeconomics productivity measures in Solow models in discrete time or continuous time by adopting a Luenberger-type approach. In each framework, we derive the productivity indicators and the dynamical paths. Firstly, we show that the expression of the productivity indicators are similar to the well-known Solow residuals, allowing us to make ananalogy between a firm's behaviour in a microeconomic setting and a country's behaviour in a macroeconomic setting. Secondly, we demonstrate that the properties of the paths are similar in both frameworks