This is also termed gross product originating, and represents the value that is added by the application of capital and labor to intermediate inputs in converting those inputs to finished products. Further information on this concept of output is available in Measurement of Productivity Growth in U.S. Manufacturing , by William Gullickson, Monthly Labor Review , July 1995, pp.
Sectoral output is defined as gross output excluding intra-industry transactions.
This measure defines output as deliveries to consumers outside the sector, in an effort to avoid the problem of double-counting that occurs when one establishment provides materials used by other establishments in the same industry. Further information on this concept of output is available in Measurement of Productivity Growth in U.S. Manufacturing , by William Gullickson, Monthly Labor Review , July 1995, pp. The Tornqvist index is a discrete approximation to a continuous Divisia index. A Divisia index is a weighted sum of the growth rates of the various components, where the weights are the component's shares in total value. When a Tornqvist index is used as an approximation to the continuous Divisia index, the growth rates are defined as the difference in natural logarithms of successive observations of the components and the weights are equal to the mean of the factor shares of the components in the corresponding pair of years.