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Solow residual |
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Solow residualA measure of technological progress equal to the difference between the rate of growth of output and the weighted average of the rates of growth of capital and labor, with factor income shares as weights. Due to Solow (1957). Also called the growth of total factor productivity. Used to compare sources of growth across countries.Similar MatchesResidual methodResidual methodA method of allocating the purchase price for the acquisition of another firm among the acquired assets. ResidualsResiduals(1) Part of stock returns not explained by the explanatory variable (the market index return). Residuals measure the impact of firm-specific events during a particular period. (2) Remainder cash flows generated by pool collateral and those needed to fund bonds supported by the collateral. Residual incomeResidual incomeIncome from efforts which continue to generate revenue over time without requiring additional effort (for example, a stream of future royalties from a book). Residual claimResidual claimRelated: Equity claim Residual dividend approachResidual dividend approachAn approach that suggests that a firm pay dividends if and only if acceptable investment opportunities for those funds are currently unavailable. Further SuggestionsResidual riskLand Residual Technique |
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