Transcription of WHAT DOES TOTAL FACTOR PRODUCTIVITY MEASURE?
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WHAT DOES TOTAL FACTOR PRODUCTIVITY MEASURE?
01-01-18 TFP Created on 19/01/01 5:15 PM 1 WHAT DOES TOTAL FACTOR PRODUCTIVITY MEASURE? By Richard G. Lipsey Emeritus Professor Economics Simon Fraser University and Fellow Canadian Institute for Advanced Research and Kenneth Carlaw Lecturer, University of Canterbury, New Zealand Study Paper Version 02 January 18, 2001 REPLACES VERSION DATED 24 December 2000 Richard G. Lipsey Simon Fraser University at Harbour Centre 515 West Hastings Street Vancouver, BC V6B 5K3 Voice: (604) 291 5036, Fax: (604) 291 5034 email: home page: ~rlipsey 01-01-18 TFP Created on 19/01/01 5:15 PM 2 TABLE OF CONTENTS I. DIVERGENT THE TECHNOLOGICAL II. THE BASICS OF TOTAL FACTOR THE AGGREGATE PRODUCTION SOME WELL-KNOWN CONCERNS ABOUT Aggregation of III.
clearly increase total factor productivity.” (Law: 6&7) This quote says that TFP measures all improvements in technology, including such things as the introduction of electricity and the motorcar. 1 This paper replaces the very preliminary version presented to the Statsc an workshop 2 May 2000, which,
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