ACCT3210 Ch6

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Author:
yhliuaa
ID:
298375
Filename:
ACCT3210 Ch6
Updated:
2015-03-22 10:13:26
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ACCT3210 Ch6
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ACCT3210 Ch6
Description:
ACCT3210 Ch6
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  1. Compare TFP across years
    • TFP for 2000: output 2000/total input cost 2000
    • TFP for 1999: output 2000/total input cost in 1999 to produce 2000 output, using 2000 input price
    • Denominator = output 2000 / PP of DL in 1999 * DL price 2000 + output 2000 / PP of DM in 1999 * DM price 2000
  2. PP
    output(units)/input(units)
  3. Cost change due to output change
    [(2000 Output - 1999 Output)/(1999 PP)] x 1999 Price
  4. Cost change due to input price changes
    [(2000 Output)/(1999 PP)] x (2000 Price - 1999 Price)
  5. Cost change due to productivity change
    [(2000 Output)/(2000 PP) - (2000 Output)/(1999 PP)] x (2000 Price)

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