Development Intensity of four Prominent Economies

Abstract

Th e paper off ers answers to one of the typical problems of economic theory – how it is practically possible tomeasure and interpret the quality of economic time series at all economic levels. At the macroeconomic level,the task is solved by weighted geometric aggregation of input factors (labor and capital) into a summary inputfactor (SIF) – the method is similar to the Cobb-Douglas production function. Th e paper shows diff erencesbetween our approach and the approach of growth accounting – our approach is based on more general conditionsand covers not only situations of growth of economic indicators but also situations of their declineor stagnation. Th e approach also allows for distinguishing the compensation of input factors. Th erefore, themethodology presented in the paper can be used in many practical applications; for instance, it enables us toclearly calculate intensive and extensive parameters of economic growth.

Keywords

• Aggregate production function
• summary input factor
• dynamic indicators
• economic growth
• intensive and extensive factors of change of indicators