Should we teach total factor productivity?
Theme 5 Miscellaneous.
Secondary school seachers.
Researchers and academics.
The goal of this lesson is to have a critical look at the notion of total factor productivity.
We will show that this concept does not measure what is supposed to measure, i.e. technical progress. Indeed, as it has been shown by Phelps Brown (1957), Warren Hogan (1958), Herbert Simon and Ferdinand Levy (1963), Anwar Shaikh (1974) and more recently by Jesus Felipe and John McCombie (2013) and Bernard Guerrien and Ozgur Gun (2014), total factor productivity is calculated from an agregated production fuction, wich itself relies on a misinterpretation of on an account identity.
Then we will see how total factor productivity is taught in different european countries - here an exchange with the audience can be fruitful.
Finally we will describe alternative possibilities for the different countries where this notion is taught, if total factor productivity is to be abandoned.
Presented by: Verger Yoann (1, 1)
Lecture (20 min)
Downloadable files: 52_5701_Verger 2021 Should we teach TFP.pdf
52_5701_Should we teach total factor productivity.pdf