---
canonical_url: "https://csls.ca/ipm-archive/ipm-issue-24/appendix-1-explaining-real-income-growth-the-translog-approach/"
title: "Appendix 1: Explaining Real Income Growth — The Translog Approach"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T07:33:49+00:00"
date_modified: "2026-07-13T07:33:49+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Fall 2012"
ipm_keyword:
  - "business sector"
  - "Canada"
  - "GDP function"
  - "methodology"
  - "production theory"
  - "real income"
  - "translog"
ipm_research_theme:
  - "Productivity trends and comparisons"
ipm_country_focus:
  - "Canada"
featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp"
status: "publish"
---

# Appendix 1: Explaining Real Income Growth — The Translog Approach

Canonical URL: https://csls.ca/ipm-archive/ipm-issue-24/appendix-1-explaining-real-income-growth-the-translog-approach/

# Appendix 1: Explaining Real Income Growth — The Translog Approach

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-24-2b-Diewert-Yu-Appendix-1.pdf)

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Cite this article as:

Diewert, Erwin, and Emily Yu. 2012. “Appendix 1: Explaining Real Income Growth — The Translog Approach.” International Productivity Monitor, No. 24 (Fall 2012): 42–53. https://www.csls.ca/ipm-archive/ipm-issue-24/appendix-1-explaining-real-income-growth-the-translog-approach/

## Authors:

-
Erwin Diewert
Department of Economics, University of British Columbia

-
Emily Yu
Global Affairs Canada

## IPM Issue 24

Fall 2012 pp. 42–53

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## Abstract

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Methodology appendix to IPM-24-2 presenting the production theory framework and translog approach used to decompose Canadian business sector real income growth, including the GDP function, output price indexes, and the treatment of exports, imports, and primary inputs in the Diewert-Morrison-Kohli methodology.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-24-2b-Diewert-Yu-Appendix-1.pdf)