Rates of growth in economic time series are one of the most commonly made computations in analytical programmes. Although exponential equation plays a pivotal role in estimating such rates of growth, there is a multiplicity of weak points associated with the usual methodology adopted for the purpose. The present note aims at highlighting some such limitations and points out avoidance of an indiscriminate use of the exponential equation. Depending upon the situation being faced with, the note outlines alternative approaches for estimating average annual rates of growth.
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