Measuring productivity increase by long-run prices: The early analyses of G.R. Porter and R. Giffen
AbstractThe 19th century economic commentators did not possess a formal measure of the rate at which productivity was increasing during the industrial take-off. Yet they did develop an intuitive method based on the comparative change in prices and wages. This paper reviews the contributions of G.R. Porter and R. Giffen and, in the light of some modern contributions, presents an assessment of their rationality and improvability under current standards. It is argued, in particular, that a proper measure of industrial productivity increase based on the change in real earnings rates is the mathematical dual of a Solovian measure of the industrial Total Factor Productivity growth.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18272.
Date of creation: 31 Aug 2009
Date of revision:
productivity growth; TFP: cost function; real wages; income distribution.;
Other versions of this item:
- Arrigo Opocher, 2010. "Measuring productivity increase by long-run prices: the early analyses of G.R. Porter and R. Giffen," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(5), pages 1271-1291.
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- B16 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Quantitative and Mathematical
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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- Bisello, Martina & Opocher, Arrigo, 2013. "Real cost reduction and productivity increase in an individual industry: a price-accounting approach in theory and practice," MPRA Paper 48367, University Library of Munich, Germany.
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