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Labour or Total Factor Productivity: Do We Need to Choose?

  • Timothy C. Sargent

    ()

  • Edgard R. Rodriguez

. In this article, as part of the symposium on total factor productivity, Timothy C. Sargent and Edgard R. Rodriquez of Finance Canada discuss the issue of the choice between labour and total factor productivity. They conclude that both measures have uses. For periods of less than a decade, labour productivity is the preferred measure, but for longer periods total factor productivity is superior. When capital stock estimates are of poor quality, it is better to use labour productivity.

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File URL: http://www.csls.ca/ipm/1/sargent-e.pdf
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File URL: http://www.csls.ca/ipm/1/sargent-f.pdf
File Function: version en francais, pp:41-44
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Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 1 (2000)
Issue (Month): (Fall)
Pages: 41-44

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Handle: RePEc:sls:ipmsls:v:1:y:2000:7
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  1. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
  2. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-62, June.
  3. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
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