Measurement error a big part of ‘missing growth’ – Philippe Aghion
Statistics fail to capture creative destruction, French academic argues
Failing to properly account for creative destruction can explain a "significant" part of the recent slowdown of growth in advanced economies, according to Philippe Aghion.
The professor of economics, based at the College de France, notes CPI statistics have to adapt to the creation of new products and the destruction of old ones. Statisticians tend to do this by extrapolating from "surviving" products, but this fails to account for the additional productivity the "entrant" products tend to
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