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June 1989

Multifactor productivity in tires and inner tubes industry

Diane Litz, Linda Moore

Upswings in both output per employee hour and multifactor productivity were aided by the rapid diffusion of radial tire-related technology and computer-assisted innovation in the manufacturing process. This article presents a supplementary productivity measure for the tires and inner tubes industry?multifactor productivity?in which output is related to the combined inputs of labor, capital, and intermediate purchases.

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