weights more accurately apportions productivity when aggregating to the national aggregate level. In a simpler model, Hall (1990) had a similar result. The Baqaee-Farhi approach enables a growth accounting in which (1) input factors like labor, capital, and energy can have Domar weights, just as industries or firms do, and (2) it is possible to separately estimate effects of overall technological improvement and of "allocative efficiency" which is higher in perfect competition and lower if price-to-cost markups are large. Markups tend to be higher to the extent that oligopolistic firms have market power. References National accounts Production economics