TFP
Business & Finance abbreviation · Economics
| Stands for | Total factor productivity |
|---|---|
| Categories | Business & Finance |
TFP stands for Total factor productivity, an economics abbreviation.
Portion of output growth not explained by increases in measured inputs such as labor and capital, attributed to technology, efficiency and innovation. It is a key driver of long-run living standards.
Example: Slower TFP growth since the mid-2000s helps explain the weak productivity of many rich economies.
Usage notes
Also called multifactor productivity or the Solow residual, after Robert Solow, who showed in 1957 that most US growth came from technical progress rather than more capital. Because TFP is measured indirectly, estimates depend on how inputs are calculated.
Related abbreviations
More economics abbreviations
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- RPI – Retail Prices Index
- SDR – Special drawing rights
- SEZ – Special economic zone
- SNB – Swiss National Bank
- SOE – State-owned enterprise
- ToT – Terms of trade
- U-3 – Official unemployment rate (U-3)
- U-6 – Broadest unemployment rate (U-6)
- UBI – Universal basic income
- WPI – Wholesale price index
- YCC – Yield curve control