Equation 1 · Selection Accounting: The Price Equation Runs the Economy
What does this equation mean?
Read the formula alongside the article passage below. Each part has a deeper page with its role in the equation, the supporting passage and nearby citations.
the applied to firms with market shares. Read the equation part by part below; each part has a contextual explanation and a link to its mathematical background.
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subscript
The lower label selects a particular version, component, or indexed member of the quantity. For example, x₀ and xₜ can be values at different positions.
How to interpret it
Read this expression with the definitions, units, and assumptions supplied by the article.
What the article says around this equation
Price’s identity, applied to firms with market shares and log-productivity values , reads:
Sources cited in the article section
- [8] Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit ↗
- [6] The Dynamics of Productivity in the Telecommunications Equipment Industry ↗
- [7] Aggregate Productivity Growth: Lessons from Microeconomic Evidence ↗
These citations give research context. Read each source to check which claims it supports.
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