Term:
Value added function
Definition:
The value added function indicates the maximum amount of current-price value-added that an establishment or industry can generate, given a set of prices for its output and for its intermediate inputs, and given a certain quantity of primary inputs.
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
