IDEAS home Printed from
   My bibliography  Save this article

Integrated Industry and Economy-wide TFP-Measures with Different Prices in Different Uses


  • Pirkko Aulin-Ahmavaara
  • Perttu Pakarinen


We derive a consistent system of industry and economy-wide measures of TFP growth based on weaker assumptions than used in the literature so far. We allow different industries to pay different prices for the same product. These price differences are not assumed to cancel out at the economy-wide level. Our economy-wide concepts of output are the average growth rates of deliveries to final demand and of the industries' value added. In the case of the former, both net taxes on products and imported intermediates contribute, in addition to labour and capital, to the output growth and even the reallocation of intermediates contributes to the economy-wide TFP growth. In the case of the latter only capital and labour contribute to the output growth and the contribution of the reallocation of intermediates is largely offset by that of value added. We demonstrate the consequences of the non-additivity of the Tornqvist index formula.

Suggested Citation

  • Pirkko Aulin-Ahmavaara & Perttu Pakarinen, 2007. "Integrated Industry and Economy-wide TFP-Measures with Different Prices in Different Uses," Economic Systems Research, Taylor & Francis Journals, vol. 19(3), pages 253-276.
  • Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:253-276
    DOI: 10.1080/09535310701571927

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Marshall B. Reinsdorf, 2010. "Terms Of Trade Effects: Theory And Measurement," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 177-205, June.
    2. Bert M. Balk, 2015. "Measuring and relating aggregate and subaggregate total factor productivity change without neoclassical assumptions," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 69(1), pages 21-48, February.

    More about this item


    Growth accounting; productivity; aggregation;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:253-276. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.