Dermatology and Venereology Review
August 2025
in “
Bőrgyógyászati és Venerológiai Szemle
”
TLDR Italian labor productivity declined mainly due to a drop in Total Factor Productivity growth.
The paper proposes a method for estimating Total Factor Productivity (TFP) trends without the restrictive assumptions of traditional growth accounting, using data on inputs and outputs. Applied to the Italian economy from 1981-2004, the findings align with traditional methods, indicating that the decline in Italian labor productivity is largely due to a widespread fall in TFP growth. A simple regression identifies the main causes of this decline as the completion of a factor reallocation process among industries and capital types.
