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Estimating Total Factor Productivity Change When No Price or Value-Share Data are Available

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Abstract

Total factor productivity (TFP) is a measure of total output divided by a measure of total input. A TFP index is a measure of total output change divided by a measure of total input change (i.e., an output index divided by an input index). It is common to compute output and input index numbers using formulas that combine quantity data with either price or value-share data. Examples include the well-known Fisher and To ̈rnqvist indices. This paper explains how output and input index numbers (and there- fore TFP index numbers) can be computed using quantity data only. It draws heavily on O’Donnell (2012, 2014, 2016).

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  • C.J. O’Donnell, 2017. "Estimating Total Factor Productivity Change When No Price or Value-Share Data are Available," CEPA Working Papers Series WP012017, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uqcepa:118
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    File URL: https://economics.uq.edu.au/files/5037/WP012017.pdf
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