RSM100Y1 Lecture : intro RSM part 3
Document Summary
aggregate output created by production function with inputs of labour (l), changes in inputs (l k l-e-r) don"t account for all growth tech change calculated as residual. productivity - how much output a country gets from its inputs. Technology or productivity growth more outputs for same inputs adds to standard of living. Labour productivity: measures output per worker or per hour: affects real" wage, can be affected by capital or other inputs, in addition to technology. Total factor productivity (tfp): growth not accounted for by other inputs Most useful measure, but most difficult to determine. productivity matters for profits nationally and in firm (us productivity growth. Future productivity growth key q in long term economic outlook. Just few tenths of a percent can add billions to gdp, government. Revenue for use on social programs and corporate profits. Labour productivity: capital stock is key contributor, impact can vary widely.
