Index Number Concepts, Measures and Decompositions of Productivity Growth
Journal of Productivity Analysis, Vol. 19 (2/3), 2003, pp. 127-160
Posted: 5 Jun 2013
Date Written: April 17, 2002
This paper explores the definitions and properties of total factor productivity growth (TFPG) indexes, focusing especially on the Paasche, Laspeyres, Fisher, Tornqvist, and implicit Tornqvist ones. These indexes can be evaluated from observable price and quantity data, and certain of these are shown to be measures of TFPG concepts and theoretical indexes that have been proposed in the literature. The mathematical relationships between these and quantity aggregates, financial measures, and price and quantity indexes are explored. Decompositions of the productivity growth indexes are also given. The paper concludes with a brief overview of some limitations on our analysis.
Keywords: Factor Productivity, Growth, Index Number, Productivity
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