new studies suggest that differences in total factor productivity (TFP) explain greatest in quantity of the variation in for capita income observed across countries (Islam.

new studies suggest that differences in total factor productivity (TFP) explain greatest in quantity of the variation in for capita income observed across countries (Islam, 1995; Klenow and Rodriguez-Clare, 1997; Hall and Jone 1999; Aiyar and Feyrer 2001; Easterly and Levine, 2001) If this is indeed the case, or if the part of TFP is even a fraction as important as the consensus prompts a closer look at by what mode TFP is measured merits considerable attention.

Several contributions have violenceed the problems associated with measuring, in particular, the stock of physical capital. Pritchett

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