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May 1997

Multifactor productivity in refrigeration and heating equipment industry

Paul V. Kern, Patricia S. Wilder

This article examines detailed productivity, output, and input data in the manufacture of refrigeration and heating equipment to provide measures of multifactor productivity growth over a 27-year period. The article also includes descriptions of recent production technology, new designs and methods of manufacturing, and market influences that could influence industry output and input. Multifactor productivity gains averaged 1.5 percent annually over the 1967?94 period. To comply with Federal legislation, the industry shifted from chlorofluorocarbons, an important input in the production process, to environmentally safer substitutes.

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