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Verdoorn's law is named after Dutch economist Petrus Johannes Verdoorn.[1][2][3] It states that in the long run productivity generally grows proportionally to the square root of output. In economics, this law pertains to the relationship between the growth of output and the growth of productivity. According to the law, faster growth in output increases productivity due to increasing returns. Verdoorn argued[4] that "in the long run a change in the volume of production, say about 10 per cent, tends to be associated with an average increase in labor productivity of 4.5 per cent." The Verdoorn coefficient close to 0.5 (0.484) is also found in subsequent estimations of the law.[5]
- ^ Verdoorn, P J (1949). "Fattori che regolano lo sviluppo della produttività del lavoro". L'Industria. 1: 3–10.
- ^ Verdoorn, P J (1988). Ironmonger, D.; Perkins, J. O. N.; Van Hoa, T. (eds.). "Fattori che regolano lo sviluppo della produttività del lavoro" [Factors governing the growth of labour productivity]. National Income and Economic Progress. Translated by Thirlwall, A. P. London: Macmillan Press: 199–207.
- ^ "Verdoorn's Law". Retrieved 2009-06-17. sourced from Verdoorn, P J (June 1980), "Verdoorn's Law in Retrospect: A Comment", Economic Journal, 90 (358), Royal Economic Society: 382–85, doi:10.2307/2231798, JSTOR 2231798
- ^ Verdoorn 1993, p. 59.
- ^ Kaldor (1966), p. 289