 Decompositions of Productivity Growth into Sectoral Effects: Some Puzzles ExplainedChapter Chapter 1 in Productivity and Efficiency Analysis, 2016, pp 1-13 from Springer Abstract: Abstract An earlier paper by Diewert (J Prod Anal 43(3):367–387, 2015) provided some new decompositions of economy wide labour productivity growth and Total Factor Productivity (TFP) growth into sectoral effects. The economy wide labour productivity growth rate turned out to depend on the sectoral labour productivity growth rates, real output price changes and changes in sectoral labour input shares. A puzzle is that empirically, the real output price change effects, when aggregated across industries, did not matter much. The economy wide TFP growth decomposition into sectoral explanatory factors turned out to depend on the sectoral TFP productivity growth rates, real output and input price changes and changes in sectoral aggregate input shares. The puzzle with this decomposition is that empirically all of these price change effects and input share effects did not matter much when they were aggregated over sectors; only the sectoral TFP growth rates contributed significantly to overall TFP growth. The present paper explains these puzzles. Keywords: Total Factor Productivity; Labour productivity; Index numbers; Sectoral contributions to growth (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-23228-7_1 Ordering information: This item can be ordered from DOI: 10.1007/978-3-319-23228-7_1 Access Statistics for this chapter More chapters in Springer Proceedings in Business and Economics from Springer |
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