likesomehelp
New member
- Joined
- Jan 24, 2020
- Messages
- 5
I am doing a growth decomposition for my city's economic growth. I have gotten the data and processed it and calculated the growth rates.
I have total economic growth and the growth rates of the four factors that contributed to it. So when I calculate (growth of x/total economic growth) I get the proportion that factor x contributed to total growth.
My problem is that one of the factors changed more in magnitude than total growth (say -6% vs -1% growth) so the absolute value of the share I get is greater than 1.
Basically, using that formula is saying that factor x contributed to 500% of total growth, which is not possible.
How do I adapt my formulae to fix that?
I have total economic growth and the growth rates of the four factors that contributed to it. So when I calculate (growth of x/total economic growth) I get the proportion that factor x contributed to total growth.
My problem is that one of the factors changed more in magnitude than total growth (say -6% vs -1% growth) so the absolute value of the share I get is greater than 1.
Basically, using that formula is saying that factor x contributed to 500% of total growth, which is not possible.
How do I adapt my formulae to fix that?