E0230: Productivity Dispersion Map Framework

Quality / Updated / COI

Quality

Reviewed

Updated

02/14/2026

Source

Citations & Trust

COI

none

TL;DR

Productivity Dispersion Map Framework maps TFP growth, firm dispersion, and capital deepening and R and D intensity, diffusion lags, and infrastructure so teams can decide on choosing productivity policy mix while documenting the frontier focus vs diffusion. It turns implicit judgment into an explicit decision record.

Applicability

Apply this framework when choosing productivity policy mix creates disputes about TFP growth, firm dispersion, and capital deepening and the reliability of R and D intensity, diffusion lags, and infrastructure. It forces a single view of the frontier focus vs diffusion, clarifies decision rights, and creates a repeatable process for updates when conditions change.

Steps

1. Define scope and horizon, then lock metric definitions for TFP growth, firm dispersion, and capital deepening so comparisons are consistent.
2. Collect R and D intensity, diffusion lags, and infrastructure and normalize units, timing, and ownership; document data quality gaps.
3. Run scenarios to see where frontier focus vs diffusion flips; record thresholds and triggers.
4. Select a preferred option, note constraints and approvals, and capture decision criteria.
5. Set monitoring cadence and review triggers tied to changes in TFP growth, firm dispersion, and capital deepening and R and D intensity, diffusion lags, and infrastructure.

Template

Template: Objective; Scope and horizon; Success metrics (TFP growth, firm dispersion, and capital deepening); Key inputs and assumptions (R and D intensity, diffusion lags, and infrastructure); Options A/B/C; Scenario ranges; Tradeoff summary (frontier focus vs diffusion); Risks and mitigations; Decision criteria; Recommendation; Owner and timeline; Review triggers; Evidence log and data refresh plan.

Pitfalls

• Misconception: treating TFP growth, firm dispersion, and capital deepening as sufficient without validating R and D intensity, diffusion lags, and infrastructure creates false confidence.
• Overweighting one side of frontier focus vs diffusion leads to decisions that unravel when conditions shift.
• Stale or unowned data sources will fail governance checks and force rework during audits.

Case

Case: In a productivity commission, leaders debated choosing productivity policy mix but had conflicting views of TFP growth, firm dispersion, and capital deepening. They used the framework to align R and D intensity, diffusion lags, and infrastructure, quantified where frontier focus vs diffusion flipped, and documented the trigger. The resulting decision log clarified accountability, reduced escalation time, and prevented repeated debates in the next planning cycle.

Citations & Trust

• The Economy (CORE Econ)
• Principles of Economics 3e (OpenStax)