The benchmark for comparison was "total factor productivity" - output divided by an index of the labor, capital and materials used in production.
The reported productivity gains of the service industry in the late 1990s can be mostly attributed to total factor productivity.
This approach describes the empirical data by use of the two production factors and some empirical quantity called total factor productivity.
Krugman argued that in the long term, only increasing total factor productivity can lead to sustained economic growth.
However, there is no agreement on how to raise total factor productivity.
The American boom in public education, specifically high schools, congruently increased the level of human capital and total factor productivity.
Since 1970, total factor productivity has increased at an average annual rate of only 0.4 percent.
It was pointed out by Wragg and Robertson (1978) that total factor productivity must rise if growth is to be sustained.
Recent evidence does indeed suggest that total factor productivity has increased during the 1980s.
Economists measure technology as part of total factor productivity, but usually as a residual after all the other factors (capital, labor) have been measured.