The Solow residual attempts to measure the amount of output not explained by

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The Solow residual is used to measure the amount of output that cannot be explained by the direct contribution of labour and capital. It is sometimes referred to as total factor productivity, as it reflects the efficiency of an economy in using its inputs to produce output. It does not directly measure technological progress, economic projections, the amount of a nation's human capital or business cycles.

The Solow Residual Attempts to Measure the Amount of Output