Boosting Economic Productivity: Unleashing the Power of Total Factor Productivity
The article discusses how to measure economic productivity using total factor productivity and multifactor productivity. Total factor productivity combines all resources used in production, while multifactor productivity looks at the ratio of total output to specific inputs like labor and materials. Multifactor productivity shows the extra output gained after considering all input factors. The OECD method focuses on labor and capital productivity, total output, costs, and value added to measure the real increase in a nation's welfare.