WebTFP is calculated by dividing output by the weighted geometric average of labour and capital input, with the standard weighting of 0.7 for labour and 0.3 for capital. [3] Total factor productivity is a measure of productive efficiency in that it measures how much output can be produced from a certain amount of inputs. WebDefinition. Total factor productivity (TFP) compares total outputs relative to the total inputs used in production of the output. As both output and inputs are expressed in term of …
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