Total Factor Productivity and Relative Prices: the case of Italy
|Title||Total Factor Productivity and Relative Prices: the case of Italy|
|Publication Type||Working Paper|
|Year of Publication||2020|
|Authors||Garau, G, Deriu, S|
|ISBN Number||978 88 68512 989|
|Keywords||input-output, Relative Price, Total Factor Profuctivity Surplus|
Fontela in his seminal work (1989) set up the distributional rule of productivity gain in the Input–Output context (Total Factor Productivity Surplus, TFPS). Garau (1996) proposed an extension to identify a measure of surplus, called Purchasing Power Transfer (PPT). This measure is given by the productivity gains and the market surplus generated by extra–profits conditions derived from rental position detained by agents. Such a decomposition is very useful from our point of view since it would provide information about the degree of non–competitiveness in di fferent markets. In our paper, we compute and explain Fontela’s TFPS comparing it with Garau’s PPT for Italy for the year 2009-2014.