Growth Accounting and Endogenous Technical Change

This study examines two approaches to growth accounting under endogenous technological progress. It is well known that the approach introduced by Solow (1957) may overstate the contribution of capital accumulation to economic growth and understate the contribution of technological progress. An alternative approach originated from
Mankiw, Romer andWeil (1992) addresses this issue. We �nd that the Mankiw-Romer-Weil approach is consistent with the knowledge-driven speci�cation for technological progress but is inconsistent with the lab-equipment speci�cation.