Transcription of Total factor productivity final - prc.gov
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Total factor productivity final - prc.gov
Total factor productivity as a Measure of Operational Efficiency Christensen Associates 800 University Bay Drive, Suite 400 Madison, WI 53705 2299 March 20, 2017 Appendix D Postal Service March 20 Comments PRC Docket No. RM2017-3 Postal Regulatory CommissionSubmitted 3/20/2017 4:18:09 PMFiling ID: 99556 Accepted 3/20/2017 Christensen Associates Table of Contents EXECUTIVE SUMMARY .. 1 1 POSTAL SERVICE TFP METHODS .. 2 COMPARISON OF TFP WITH OTHER PROPOSED MEASURES OF OPERATIONAL EFFICIENCY .. 4 TFP DOES NOT UNCOVER THE SOURCES OF productivity IMPROVEMENT, NOR DOES IT INDICATE WHAT TFP INCREASES ARE ACHIEVABLE .. 5 INCREASES IN TFP LEAD TO COST REDUCTIONS, BUT NET INCOME IS AFFECTED BY VARIOUS OTHER factors BEYOND THE CONTROL OF THE POSTAL SERVICE .. 6 THE POSTAL SERVICE HAS INCREASED TFP AS VOLUMES HAVE DECLINED.
Total factor productivity, sometimes called multifactor productivity, is a comprehensive measure of economic efficiency. The earliest total factor productivity studies were designed to understand the
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