A Primer on Multifactor Productivity: Description, Benefits, and Uses

This primer presents a description of multifactor productivity (MFP) and its calculation. Productivity is an important measure of the state of the economy at various levels: firm, industry, sectoral, and the macroeconomic. The method described is the one used by government agencies, such as the Bureau of Labor Statistics (BLS) and the Bureau of Transportation Statistics (BTS), as well as the Economic Research Service (U.S. Department of Agriculture). The method is also used outside of government, including academia and other private researchers. The estimation of multifactor productivity includes the measurement of output (of an industry, etc.) and the inputs used to create the output. It also includes a weighting of the inputs; the weights indicate the relative importance of the inputs in industry output. Besides the description and measurement of multifactor productivity, the primer includes a discussion of the benefits of increasing MFP. These relate to increases in real income per capita in the country, which affects increases in the standard of living of the population. A rising standard of living has been a key goal of U.S. government policy as well as of other governments. Lastly, the primer discusses the uses that can be made of MFP estimates. They are indications of production efficiency and can be used as proxies to indicate rates of return to capital and other resources used in production, in an industry—such as the various transportation industries. Rail truck and air transportation are included in the discussion of the transportation sector.

• Record URL:
  • https://doi.org/10.21949/1501478
• 
• Record URL:
  • http://www.bts.gov/programs/economics_and_finance/a_primer_on_multifactor_productivity/pdf/entire.pdf
• Record URL:
  • http://www.bts.gov/programs/economics_and_finance/a_primer_on_multifactor_productivity/
• Record URL:
  • https://rosap.ntl.bts.gov/view/dot/34969
• Corporate Authors:

  Research and Innovative Technology Administration

  Bureau of Transportation Statistics, 1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Apostolides, Anthony D
• Publication Date: 2008-4

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; References; Tables;
• Pagination: 13p

Subject/Index Terms

• TRT Terms: Air transportation; Economic analysis; Economic benefits; Economic factors; Income; Industries; Productivity; Railroads; Trucking; Utilization
• Uncontrolled Terms: Multifactor productivity
• Subject Areas: Aviation; Economics; Freight Transportation; Highways; Motor Carriers; Railroads; Research; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 01105034
• Record Type: Publication
• Files: NTL, TRIS, USDOT
• Created Date: Jul 24 2008 1:34PM