Coupled with information on the deflators for secondary outputs, we construct a measure of TFP growth for products that reflects the input structure and costs of the industry in which these products were produced.ĭisentangling TFP growth between primary and secondary industries 1) helps shed light on the origins of changes in aggregate TFP, 2) provides useful information in analyzing international competitiveness where trade is driven by product competitiveness, 3) allows for consistent aggregation of TFP growth from commodities to broad components of final demand (e.g., investment and consumption) when primary and secondary industry production span expenditure categories (Basu, Fernald, Fisher, and Kimball 2013). Using unpublished detail from BEA and the BEA-BLS integrated industry level production account, we move nominal and real inputs for two types of workers (those with a college degree and those without) and five types of capital (IT equipment, software, R&D, entertainment originals, and other capital) from primary to secondary industries. To align with BEA’s After Redefinition Input-Output tables, we construct a KLEMS production account where outputs and inputs have been moved from their primary to their secondary industry to assess productivity growth for redefined industries. We reconsider the basic premise of (Raa and Wolff 1991) that it is important to distinguish between primary and secondary production in analyzing the sources of aggregate productivity change. (Presumably, if production was rebalanced enough toward a secondary product, an establishment’s industry classification would change and its primary product would become secondary, so the basic issue would still exist.) If secondary products are substantively different from primary products (often with very different price indexes), this confounds the composition of production and TFP and has the potential to obscure analysis of the underlying reasons for changes in aggregate TFP. When establishments engage in secondary production, measured total factor productivity (TFP) growth at the industry level reflects the joint production process of the primary and secondary products and reallocation between these products within an industry.

Transportation Economics in the 21st Century.

Training Program in Aging and Health Economics.

The Roybal Center for Behavior Change in Health.

Retirement and Disability Research Center.

Measuring the Clinical and Economic Outcomes Associated with Delivery Systems.

Improving Health Outcomes for an Aging Population.

Early Indicators of Later Work Levels, Disease and Death.

Conference on Research in Income and Wealth.

Boosting Grant Applications from Faculty at MSIs.

Productivity, Innovation, and Entrepreneurship.

International Finance and Macroeconomics.

As a result, the importance and value of supply chain risk management strategies like redundancy and diversification is more recognized than ever as a means to reduce vulnerability and enhance resilience.

Warehouse management is the storage of finished goods before their distribution to final consumers, and the related field of inventory management seeks to keep supplies at the levels needed to satisfy forecast consumer demand.Īs the recent COVID-19 pandemic has shown, maintaining reliable logistics networks becomes more important but also more challenging during unexpected events.

The transportation of materials and resources to the production plant is called inbound logistics, while outbound logistics oversee the transportation and distribution of products to customers. Logistics networks have three core elements: transportation, warehousing, and inventory. From growing your business, to group-level accounting, or managing multiple projects, Access Financials has been developed in the cloud by finance experts. Savvy logistics management is important because it enables businesses to keep costs low while meeting customer demand as quickly and efficiently as possible. In business, logistics is the coordination of the activities within the supply chain that move products from suppliers to consumers.

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