Definition

1. Colloquially the productivity the sum of productive measures and behaviors is closely related, to the and the opposite of

2. In the political economy (quantity) the relationship between under productivity what is produced (outputs, becomes), and the means (factors of production), used for it with the production process, understood:

\ mbox {productivity} = \ frac {\ mbox {yield quantity}} {\ mbox {quantity required}} = \ frac {\ mbox {outputs}} {\ mbox {inputs}}

The output is a current size, as quantity per time unit is thus indicated. The input can be a current size, for example number of the working hours in one year or writings-off on the capital stick in one year. It can be also an inventory size for example average number of employed persons in one year or average capital stick of a yearly.

Since the produced goods of completely different kind are and can the composition of production after different goods in timing also still change, it is necessary to evaluate the different goods with prices in order to be able to indicate the total outputs as linear size. For this the goods are evaluated to market prices, if such exist. Goods, for which there are no market prices, are evaluated to production costs. The moreover with the output pure are out-counted by price clearing procedures. A method is for instance counting in constant prices of a base year.

The same evaluation problem results also in the case of the factor of production capital, since the capital stick consists of different goods. With the factor of production work against it to the physical quantities such as number of employed persons or number of working hours one falls back.

Factor productivity

With the determination of the factor productivity the quantity of the produced goods is set into relation to the quantity required of a factor.

One cannot understand this so statistically measured causally in the sense the fact that for instance a rising productivity shows that the workers become "“more industrious"” and that shows sinking capital productivity that the capital brings less and less. Rather rising productivity is consequence of the fact that for each workers are meant, are used ever more "“capital"”, actually means of production. Typically the productivity rises therefore on a long-term basis, while the "“capital"” - productivity stagnates or back goes.

In the neoclassical theory there is the conception the fact that the factors of production are remunerated in accordance with their productivity (should). With the help of the statistically measured it can be examined whether this is the case.

Productivity

The most well-known and most-used factor productivity is the productivity. This is predominantly because of it that the quantity of assigned work is to be determined more easily than for instance the wear or the existence of the assigned capital, thus from machines, buildings and (with overall economic views of productivity) infrastructure facilities.

The economical formula for the productivity for each working hour reads:

Productivity pi = gros domestic product-material/active volumes = gros domestic product-material/Et * h

whereby the material gross domestic product, Et is gros domestic product material the number of employed persons and h the number of performed working hours for each employed persons.

The economical formula for the productivity for each employed person reads:

Productivity pi = gros domestic product-material/Et

Capital productivity

The Federal Statistical Office proves a capital productivity, by setting the gross domestic product in constant prices (last the yearly 1995) into the relationship to the capital stick. The latter is likewise computed the gross fixed assets in constant prices.

The addition from different kinds of capital to a total capital stick is based on doubtful acceptance, which were criticized in the course of the capital controversy.

Empirical findings

According to OECD, Economic Outlook No. 77, June 2005 results the following:

In the OECD countries, thus in for instance the industrialized countries, potential production (production during normal extent of utilization of the capital stick) rose annual average from 1983 to 1992 around 2,9%. This slowed down itself something on annual average 2.6% 1993 to 2002.

The occupation grew 2.4% and 1.1% annual average in these indicated periods. The increase in employment slowed down thus in the OECD.

For the productivity from it approximately a growth of 0,5% in first and 1.5% in the second time period results. Productivity growth therefore accelerated itself.

The capital stick grew by 3,7% and/or by 3,1% annual average, thus more rapidly than production. The capital productivity therefore decreased, annual average over 0,8% 1983 to 1992 and by 0,5% 1993 to 2002.

In all rule the productivity central and on a long-term basis increases, while the capital productivity sinks rather like here in the OECD countries. A remarkable exception are the USA, for which the OECD indicates a growth of the capital productivity 1983 to 1992 of annual average 0.1% and from 1993 to 2002 of likewise 0.1%.

A capital productivity sinking on a long-term basis is problematic, since this means that overall economic capital profitability (unearned income in relation to the capital stick) can be only held on a long-term basis, if the portion of the earned incomes of the GROS DOMESTIC PRODUCT is made smaller, whereby this would have naturally at the latest an end if this wage ratio had reached the value zero.

People and economical interesting also their is apart from the average productivity of the factors regarded so far. This surrounds itself on, like much the output increased, if the overseas trading station set rises around a unit. The of the factor work can be e.g. based on it, by which amount of the outputs grows, if an additional working hour is carried out. are from special interest, because they determine the market price on perfect factor markets for the factor.

Mathematically the of a factor can be determined as partial derivative of the production function after this factor.

Total factor productivity

It can empirical be observed that the growth of the output Y cannot only be explained from the growth of the inputs work A and capital K, but that an unexplainable remainder remains remaining as it were. This part of the growth rate of Y, which cannot be explained by changes in the quantities required of A or K, is called total factor productivity. It can be interpreted as measure for the technical progress, which provides independently of the employment of the factors of production for a growth of the output Y.

Related links

• House of the productivity ipm network (Institut for productivity management)
• Lecture market-focused concept to the productivity management in producing enterprises
• Desktop notifications destroy productivity and creativity - an article over the disadvantages of interruptions with the computer work.
• Factor x: Portal for introduction to the topic resources productivity with numerous examples

Articles in category "Productivity"

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Related Websites

We found here 3 related websites.

• Labor Productivity and Costs Home Page
  The Major Sector Productivity and Costs program produces quarterly and annual output ... "Industry Productivity Measures, Chapter 11 of the BLS Handbook of ...


• Overview of BLS Productivity Statistics
  Multifactor productivity measures output per unit of combined inputs, which consist ... For more information on the measurement of productivity, see the BLS ...


• Productivity and Costs
  Manufacturing sector: Productivity, hourly compensation, and unit labor costs, ... Major sector productivity data questions: dprweb@bls.gov ...