Term:
Productivity change
Definition:
Productivity change refers conceptually, the combined effects of changes in technical efficiency, allocative efficiency, disembodied technical change, and economies of scale. When measured residually, additional factors bear on the residual, in particular the rate of capacity utilisation and measurement errors.
Domain:
Economics & National Accounts
Source:
OECD Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity Growth, OECD, Paris, March 2001, Annex 1 – Glossary