--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-29/reconciling-gross-output-tfp-growth-with-value-added-tfp-growth/" title: "Reconciling Gross Output TFP Growth with Value Added TFP Growth" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:40:47+00:00" date_modified: "2026-07-13T07:40:47+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2015" ipm_keyword: - "Fisher" - "gross output" - "intermediate inputs" - "Laspeyres" - "magnification factor" - "methodology" - "Paasche" - "primary inputs" - "TFP" - "value added" ipm_research_theme: - "Measurement and methodology" ipm_country_focus: - "International" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Reconciling Gross Output TFP Growth with Value Added TFP Growth Canonical URL: https://csls.ca/ipm-archive/ipm-issue-29/reconciling-gross-output-tfp-growth-with-value-added-tfp-growth/ # Reconciling Gross Output TFP Growth with Value Added TFP Growth [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-29-4-Diewert.pdf) Cite this article × Cite this article as: Diewert, Erwin. 2015. “Reconciling Gross Output TFP Growth with Value Added TFP Growth.” International Productivity Monitor, No. 29 (Fall 2015): 60–67. https://www.csls.ca/ipm-archive/ipm-issue-29/reconciling-gross-output-tfp-growth-with-value-added-tfp-growth/ ## Author: - Erwin Diewert Department of Economics, University of British Columbia ## IPM Issue 29 Fall 2015 pp. 60–67 ## Related IPM articles [Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Barbara Fraumeni Fall 2025 | IPM Issue 49 | pp. 103–115](https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [ONS Response to ‘Are UK Regional Productivity Disparities Really Narrowing?’ Richard Prothero Spring 2025 | IPM Issue 48 | pp. 85–89](https://csls.ca/ipm-archive/ipm-issue-48/ons-response-to-are-uk-regional-productivity-disparities-really-narrowing/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? 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Basically, as the input base becomes smaller, the corresponding estimates of TFP growth become larger. A fairly simple approximate relationship between Fisher indexes of gross output TFP growth and the corresponding Fisher index of value added TFP growth is also derived. The methodology developed in this article has a number of applications. SCHREYER (2001:26) DEVELOPED AN approxi- Cet article obtient des expressions exactes relativement simples qui relient la croissance de la productivité multifactorielle (PMF) de la valeur ajoutée dans un cadre de valeur ajoutée aux mesures correspondantes de la croissance de la PMF dans un cadre de production brute lorsque des indices de Laspeyres ou de Paasche sont utilisés pour agréger les extrants et les intrants. Fondamentalement, à mesure que la base d’intrants devient plus petite, les estimations correspondantes de la croissance de la PMF deviennent plus importantes. Une relation approximative assez simple entre les indices de Fisher de la croissance de la PMF de la production brute et l’indice de Fisher correspondant de la croissance de la PMF de la valeur ajoutée est également dérivée. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-29-4-Diewert.pdf)