1 A Note on Reconciling Gross Output TFP Growth with Value Added TFP Growth December 17, 2014 Erwin Diewert 1 Discussion Paper 14-12, School of Economics, University of British Columbia, Vancouver, B.C., Canada, V6N 1Z1. Email: erwin.diewert@ubc.ca Abstract The paper obtains relatively simple exact expressions that relate value added Total Factor Productivity growth (TFP growth or Multifactor Productivity Growth) in a value added framework to the corresponding measures of TFP growth in a gross output framework when Laspeyres or Paasche indexes are used to aggregate outputs and inputs. Basically, as the input base becomes smaller, the corresponding estimates of TFP growth become larger. A fairly simple approximate relationship between Fisher indexes of gross output TFP growth and the corresponding Fisher index of value added TFP growth is also derived. The methodology developed in this note can be applied in other situations. Journal of Economic Literature Numbers C43, D24. Key Words Total Factor Productivity growth, TFP growth, Multifactor Productivity growth, MFP growth, Laspeyres, Paasche and Fisher index number formulae, magnification factors. 1 The author gratefully acknowledge the financial support of an Australian Research Council Linkage Grant (project number LP0884095) and a SSHRC grant. The author thanks Kevin Fox for helpful comments.