Dictionary Entry | The New Palgrave Dictionary of Economics | 2008

Total Factor Productivity

by Diego Comin

Abstract

Total Factor Productivity (TFP) is the portion of output not explained by the amount of inputs used in production. The following definition describes the measurement and importance of TFP for growth, fluctuations and development as well as likely future directions of research.

Keywords: Business Cycles; Economic Growth; Measurement and Metrics; Production; Performance Productivity; Research;

Citation:

Comin, Diego. "Total Factor Productivity." In The New Palgrave Dictionary of Economics. 2nd ed. Edited by Steven Derlauf and Larry Blume. Hampshire, U.K.: Palgrave Macmillan, 2008.