Finance Train LogoFinance Train
Learning LibraryTemplatesBlog
Data Science Bundle
Finance TrainFinance Train
Learning LibraryTemplatesBlog
Data Science Bundle
Lesson 3 of 20

Changes in Productivity: The One-Third Rule

According to the One Third Rule, the changes in productivity in the US economy can be estimated as follows:

%Δ Productivity = 1/3(%Δ Physical Capital/labor hour) + %Δ Technology

For example, if productivity increased by a total of 3% and the stock of physical capital increased by 3%, then one could infer that 2% of the productivity was caused by advances in technology: 3% = 1/3(3%) + 2%

Previous Lesson

Economic Growth

Next Lesson

The Productivity Curve

Back to ebook

Economics

20 lessons

Lessons

1
CFA Level 2: Economics - Introduction
2
Economic Growth
3
Changes in Productivity: The One-Third Rule
4
The Productivity Curve
5
Economic Growth Theories
6
Government Regulation, Deregulation, and Regulatory Behaviour
7
Gross Domestic Product (Measuring Economic Activity)
8
International Trade & Trade Restrictions
9
Balance of Payments
10
Foreign Exchange Rate Systems and Parity Relationships
11
Foreign Exchange Floating Rate Systems
12
Fixed Exchange Rate Systems
13
Overview of Currency Markets
14
Forward Exchange Rates
15
Interest Rate Parity
16
Purchasing Power Parity (PPP)
17
International Fisher Relation
18
Uncovered and Covered Interest Rate Parity Relationship
19
Forecasting Exchange Rates
20
CFA Level 2 Economics – Recommendations
Finance Train

Learn data science and AI skills for finance through practical courses and tutorials.

Learn

  • Learning Library
  • Course Directory
  • Blog

Resources

  • Templates & Downloads
  • Tools
  • Tables
  • Calculators

Company

  • About
  • Contact
  • Privacy
  • Terms

© 2026 Finance Train. All rights reserved.