total_factor_productivity

Total Factor Productivity (TFP)

A real-time, quarterly series on total factor productivity (TFP) for the U.S. business sector, adjusted for variations in factor utilization - labor effort and capital's workweek.

The utilization adjustments follows Basu, Fernald, and Kimball (BFK, 2006). Using relative prices and input-output information, the series is also decomposed into separate TFP and utilization-adjusted TFP series for equipment investment (including consumer durables) and "consumption" (defined as business output less equipment and consumer durables).

Labor includes an adjustment for "quality" or composition. Capital services are also adjusted for changes in composition over time (e.g. computers, other equipment, structures, and inventories).

Source: https://www.frbsf.org/research-and-insights/data-and-indicators/total-factor-productivity-tfp/

Examples

from openbb import obb
obb.economy.total_factor_productivity()
# Get summary data instead of the default quarterly time series.
obb.economy.total_factor_productivity(frequency='summary')

Parameters

• standard
• federal_reserve

frequency: Literal['quarter', 'annual', 'summary'] | None
Default: quarter
Type of data to return. 'quarter' for quarterly time series, 'annual' for annual time series, 'summary' for summary statistics (period means).

start_date: date | None | str
Start date of the data, in YYYY-MM-DD format. Only applicable for time series data (quarter/annual).

end_date: date | None | str
End date of the data, in YYYY-MM-DD format. Only applicable for time series data (quarter/annual).

---

Returns

results: TotalFactorProductivity

Serializable results.

provider: Optional[Literal['federal_reserve']]

Provider name.

warnings: Optional[list[Warning_]]

list of warnings.

chart: Optional[Chart]

Chart object.

extra: dict[str, Any]

Extra info.

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Data

• standard
• federal_reserve

date: date | None | str
The date of the data.

d_y_prod: float | None
Business output, expenditure (product) side. From NIPA tables, Gross Value Added: Total Business: Quantity Index.

d_y_inc: float | None
Business output, measured from income side. Nominal business output is GDI less nominal non-business output. Real business income uses expenditure-side deflator.

d_y: float | None
Output. Average of d_y_prod and d_y_inc (weighted equally). If d_y_inc not yet available, equals d_y_prod.

d_hours: float | None
Hours worked in the business sector. From BLS productivity and cost release.

d_lp: float | None
Business-sector labor productivity, defined as d_y - d_hours. Note: Labor productivity in the BLS productivity-and-cost release equals d_y_prod - d_hours.

d_k: float | None
Capital input. Perpetual inventory stocks calculated from disaggregated quarterly NIPA investment data, then growth rates are weighted by estimated rental prices.

d_lq_bls_interpolated: float | None
Labor composition/quality from BLS. Pre-1979 is interpolated annual BLS MFP estimate of labor composition (interpolated using Denton (1971) relative to changes in hours).

d_lq_aaronson_sullivan: float | None
Labor composition/quality following Aaronson-Sullivan. 1979:Q1 - present follows Aaronson and Sullivan (2001), as extended by Bart Hobijn and Joyce Kwok (FRBSF).

d_lq: float | None
Labor composition/quality actually used. Pre-1979 is d_lq_bls_interpolated, 1979:Q1 onward uses d_lq_aaronson_sullivan.

alpha: float | None
Capital's share of income (ratio between 0 and 1). Based primarily on NIPA data for the corporate sector, assuming private noncorporate factor shares match corporate shares.

d_tfp: float | None
Business sector Total Factor Productivity. Calculated as d_y - alphad_k - (1-alpha)(d_hours+d_lq), i.e., output growth less the contribution of capital and labor.

d_util: float | None
Utilization adjustment for capital and labor. Uses Basu, Fernald, Fisher, and Kimball (2013) estimates applied to quarterly data.

d_tfp_util: float | None
Utilization-adjusted Total Factor Productivity. Calculated as d_tfp - d_util, adjusting for variations in factor utilization.

relative_price: float | None
Relative price growth of 'consumption' to price of 'equipment'. Measures the relative price of non-equipment goods and services to price of equipment (with consumer durables classified as equipment).

inv_share: float | None
Equipment and consumer durables share of business output (ratio between 0 and 1). Represents the proportion of output devoted to equipment investment and consumer durables.

d_tfp_i: float | None
TFP in equipment and consumer durables sector. Calculated from d_tfp assuming that relative price growth reflects relative TFP growth.

d_tfp_c: float | None
TFP in non-equipment business output ('consumption' goods and services). Calculated from d_tfp assuming that relative price growth reflects relative TFP growth.

d_u_invest: float | None
Utilization adjustment in producing investment goods. Uses estimates from Basu, Fernald, Fisher, and Kimball to calculate utilization for producing equipment and consumer durables.

d_u_consumption: float | None
Utilization adjustment in producing non-investment business output ('consumption'). Uses estimates from Basu, Fernald, Fisher, and Kimball to calculate utilization for producing non-investment goods and services.

d_tfp_i_util: float | None
Utilization-adjusted TFP in producing equipment and consumer durables. Calculated as d_tfp_i - d_u_invest.

d_tfp_c_util: float | None
Utilization-adjusted TFP in producing non-equipment business output ('consumption'). Calculated as d_tfp_c - d_u_consumption.

variable: str | None
The variable name (e.g., 'd_y', 'd_tfp', 'd_tfp_util').

variable_title: str | None
Human-readable title for the variable.

full_sample_mean: float | None
Mean value over the full sample period.

past_4_quarters: float | None
Mean value over the past 4 quarters.

past_8_quarters: float | None
Mean value over the past 8 quarters.

since_2019: float | None
Mean value since 2019:Q4.

period_2004_2019: float | None
Mean value for the period 2004:Q4 to 2019:Q4.

period_1995_2004: float | None
Mean value for the period 1995:Q4 to 2004:Q4.

period_1973_1995: float | None
Mean value for the period 1973:Q1 to 1995:Q4.

period_1947_1973: float | None
Mean value for the period 1947:Q1 to 1973:Q1.