Appended Note 3-2 Calculation Method for Total Factor Productivity
- Japanese version
- English version
Estimation for Total Factor Productivity (TFP) shows that on the assumption of the production function, the residual (Solow Residual) is calculated by subtracting contributions of capital and labor from real growth.
2. About data source and its creation
(1) Real GDP
Real GDP by economic activity were used from National Income Statistics, Cabinet office (93 SNA). However, the imputed house rent included in the real estate industry is deducted.
(2) Capital Stock
The quarter average of the calendar year was calculated on the basis of the capital stock amount from " Private Enterprise Capital Stock Statistics" , Cabinet office. Gaps were adjusted with regard to the privatization of NTT/JR and sales of Shinkansen to the private sector.
(3) Operating rate
As for the manufacturing industry, the operating rate of manufacturing according to the mining and manufacturing index, Ministry of Economy, Trade and Industry was used. We calculated the operating rate of non-manufacturing industries for use (All Industry Activity Index is used for construction and agriculture) by removing trends from the "Tertiary Industry Activity Index/capital stock of non-manufacturing industries" .
(4) Number of workers and hours worked
Both are from National Account, Cabinet office.
(5) Labor share
Data is from National Economic Account Quarterly, Cabinet Office. Remuneration for employees / (Nominal GDP - (Indirect tax + Subsidies)) was calculated by industry and the FY 1990-00 average was used. The remuneration for employees was calculated on the basis of the remuneration for employers while referring to the ratio of number of employers to the number of workers, and the corporate earnings, etc for an individual enterprise.