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Measuring Productivity Change without Neoclassical Assumptions: A Conceptual Analysis

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    Abstract

    The measurement of productivity change (or difference) is usually based on models that make use of strong assumptions such as competitive behaviour and constant returns to scale. This survey discusses the basics of productivity measurement and shows that one can dispense with most if not all the usual, neoclassical assumptions. By virtue of its structural features, the measurement model is applicable to individual establishments and aggregates such as industries, sectors, or economies.

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    File URL: http://www.uq.edu.au/economics/cepa/docs/WP/Balk_CEPA%20WP_04_07.pdf
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    Paper provided by School of Economics, University of Queensland, Australia in its series CEPA Working Papers Series with number WP042007.

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    Date of creation: 2007
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    Handle: RePEc:qld:uqcepa:27

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    1. Denis Lawrence & W. Diewert & Kevin Fox, 2006. "The contributions of productivity, price changes and firm size to profitability," Journal of Productivity Analysis, Springer, vol. 26(1), pages 1-13, August.
    2. Robert W. Dimand & John Geanakoplos, 2005. "Celebrating Irving Fisher," American Journal of Economics and Sociology, Wiley Blackwell, vol. 64(1), pages 3-18, 01.
    3. Nicholas Oulton, 2005. "Ex post versus ex ante measures of the user cost of capital," LSE Research Online Documents on Economics 19885, London School of Economics and Political Science, LSE Library.
    4. Roland Spant, 2003. "Why Net Domestic Product Should Replace Gross Domestic Product as a Measure of Economic Growth," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 39-43, Fall.
    5. Susanto Basu & John G. Fernald, 1997. "Aggregate productivity and aggregate technology," International Finance Discussion Papers 593, Board of Governors of the Federal Reserve System (U.S.).
    6. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Productivity, Volume 3: Information Technology and the American Growth Resurgence," MIT Press Books, The MIT Press, edition 1, volume 3, number 0262101114, December.
    7. Marcel P. Timmer & Mary O’Mahony & Bart van Ark, 2007. "EU KLEMS Growth and Productivity Accounts: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 71-85, Spring.
    8. Rymes, T K, 1983. "More on the Measurement of Total Factor Productivity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 29(3), pages 297-316, September.
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