factor inputs

factor inputs

FACTORS OF PRODUCTION (labour, capital, etc.) that are combined to produce OUTPUT of goods and services. See PRODUCTION FUNCTION, COST FUNCTION.
References in periodicals archive ?
In their classical study of the US economy Jorgenson, Gollop and Fraumeni (1987) introduced this approach which is built around the concept of a gross output production function with two groups of factor inputs, capital (K) and labour (L), and three groups of intermediate inputs, energy (E), materials (M) and services (S).
Proposition 1: Firms should take deliberate action to break down, or actively question, myopic views of factor inputs.
In empirical application, however, the changes in the quality of factor inputs are hard to calculate and often omitted, without reflecting embodied technical progress correctly.
In other words, TFP growth is commonly measured as the unexplained residual in a growth model in which factor inputs are the only explanatory variables.
Fernald (2014) identifies three major sources of variations in quarterly labor productivity: available factor inputs per hour worked, the intensity with which firms use available capital and labor, and total factor productivity, a residual component that captures the productivity-enhancing effects of various unmeasured factors.
The Policy also provides an improved competitive platform for businesses, as competition for factor inputs would be fairer in terms of production costs.
The author argues that "the secret of successful economies lies not in achieving high TFP growth but in sustaining reasonable TFP growth despite the intensive mobilization of factor inputs over extended periods" (p.
Given an economic objective and information on relative prices an individual optimum is defined as a profit maximising objective given input and output prices or cost minimisation given factor inputs and input prices.
Corruption affects factor inputs, capital, and labor negatively, neutralizing the effect 01' the knowledge component of capital and turning negative the externality from human capital.
Kendrick Index of TFP (Total Factor Productivity) is an arithmetic measure because here tangible factor inputs are an arithmetic average of labor and capital input.
A critical concern is that the bulk of these studies assume identical production technologies and factor inputs across countries for calculating the factor content of countries' trade.
From the Agriculture module, data on maize production such as maize output, factor inputs use and cost, access to extension services and credit, were generated and matched with data on farmer characteristics that were derived from the Socio-economic module.