Total factor productivity

Total factor productivity is a measure of the level of technology; the amount of output per unit of input, where different inputs are combined on the basis of their factor shares. (Cf. Solow residual.)

Definition

According to Macroeconomics by Mankiw (7th edition),

Total factor productivity. A measure of the level of technology; the amount of output per unit of input, where different inputs are combined on the basis of their factor shares. (Cf. Solow residual.)

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Total factor productivity (TFP). The ratio of the quantity of output produced to the costs of all inputs used, based on current period prices.