Measuring and Decomposing Agricultural Productivity and Profitability Change

  title={Measuring and Decomposing Agricultural Productivity and Profitability Change},
  author={Christopher J. O’Donnell},
The total factor productivity (TFP) of a multiple-output multiple-input firm can be defined as the ratio of an aggregate output to an aggregate input. With this definition, index numbers that measure changes in TFP can be expressed as the ratio of an output quantity index to an input quantity index. This paper uses the term multiplicatively complete to describe TFP index numbers that are constructed in this way. O'Donnell (2008) shows that, irrespective of the returns to scale and/or scope… CONTINUE READING
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