Total factor productivity and relative prices: the case of Italy

<abstract><p>In his seminal work, Fontela (1989) set up the distributional rule of productivity gain in input–output context (total factor surplus, TFPS). Garau (1996) proposed an extension, to identify a measure called purchasing power transfer (PPT). This is given by gains and market surplus generated extra-profit conditions derived from rental positions detained agents. Such decomposition useful because it provides information about degree non–competitiveness different markets. In this paper, we compute explain Fontela's TFPS comparing with Garau's PPT for Italy over 2009–2014.</p></abstract>