Total Factor Productivity
Total factor productivity (TFP) is the portion of output not explained by the amount of inputs used in production. This article sets out the measurement and importance of TFP for growth, fluctuations and development as well as likely future directions of research.
KeywordsEndogenous growth Innovation Patents Real business cycles Research and development Solow residual Technology Total factor productivity
I thank Steven Durlauf for helpful comments.
- Aghion, P., Comin, D., and P. Howitt. 2006. When does domestic saving matter for economic growth? Working Paper No. 12275. Cambridge, MA: NBER.Google Scholar
- Alfaro, L., Chanda, A., Kalemi-Ozcan, S., and S. Sayek. 2006. How does foreign direct investment promote economic growth? Exploring the effects of financial markets on linkages. Working Paper No. 12522. Cambridge, MA: NBER.Google Scholar
- Boldrin, M., and D. Levine. 2000. Growth under perfect competition. Los Angeles: Mimeo, UCLA.Google Scholar
- Burnside, C., M. Eichenbaum, and S. Rebelo. 1995. Capital utilization and returns to scale. In NBER macroeconomics annual, ed. B.S. Bernanke and J.J. Rotemberg. Cambridge, MA: MIT Press.Google Scholar
- Comin, D., and S. Mulani. 2006. A theory of growth and volatility at the aggregate and firm level. Working Paper No. 11503. Cambridge, MA: NBER.Google Scholar
- Comin, D., Hobijn, B., and E. Rovito. 2006. Five facts you need to know about technology diffusion. Working Paper No. 11928. Cambridge, MA: NBER.Google Scholar
- King, R., and S. Rebelo. 1999. Resuscitating real business cycles. In Handbook of macroeconomics, vol. 1B, ed. J.B. Taylor and M. Woodford. Amsterdam: North-Holland.Google Scholar
- Klenow, P., and A. Rodriguez-Clare. 1997. The neoclassical revival in growth economics: Has it gone too far. In NBER macroeconomics annual, ed. B. Bernanke and J. Rotemberg. Cambridge, MA: MIT Press.Google Scholar