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An Assumption-Free Framework For Measuring Productivity Change

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  • Bert M. Balk

Abstract

The measurement of productivity change (or difference) is usually based on models that make use of strong assumptions such as competitive behavior and constant returns to scale. This survey discusses the basics of productivity measurement and shows that one can dispense with most if not all of 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. Copyright 2010 The Author. Journal compilation International Association for Research in Income and Wealth 2010.

Suggested Citation

  • Bert M. Balk, 2010. "An Assumption-Free Framework For Measuring Productivity Change," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 224-256, June.
  • Handle: RePEc:bla:revinw:v:56:y:2010:i:s1:p:s224-s256
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    References listed on IDEAS

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    Cited by:

    1. de Mey, Yann & Vancauteren, Mark & Van Passel, Steven, 2011. "Input-output Concepts, Profits and Productivity Growth: An Application Using Flemish Farm Level Data," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114448, European Association of Agricultural Economists.
    2. Thunberg, Eric & Walden, John & Agar, Juan & Felthoven, Ron & Harley, Abigail & Kasperski, Stephen & Lee, Jean & Lee, Todd & Mamula, Aaron & Stephen, Jessica & Strelcheck, Andy, 2015. "Measuring changes in multi-factor productivity in U.S. catch share fisheries," Marine Policy, Elsevier, vol. 62(C), pages 294-301.
    3. Lippe Peter von der & Diewert W. Erwin, 2010. "Introduction to the Special Issue on Index Number Theory and Price Statistics," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(6), pages 660-672, December.
    4. repec:dgr:rugggd:gd-137 is not listed on IDEAS
    5. Ball, V. Eldon & Färe, R. & Grosskopf, S. & Margaritis, D., 2014. "The role of energy productivity in the U.S. agriculture," UC3M Working papers. Economics we1424, Universidad Carlos III de Madrid. Departamento de Economía.
    6. C. Lovell & J. Lovell, 2013. "Productivity decline in Australian coal mining," Journal of Productivity Analysis, Springer, vol. 40(3), pages 443-455, December.
    7. Marcel P. Timmer & Ilya B. Voskoboynikov, 2014. "Is Mining Fuelling Long-Run Growth in Russia? Industry Productivity Growth Trends Since 1995," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 398-422, November.
    8. Thomas Niebel & Marianne Saam, 2016. "ICT and Growth: The Role of Rates of Return and Capital Prices," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(2), pages 283-310, June.
    9. Bert M. Balk, 2015. "Measuring and relating aggregate and subaggregate total factor productivity change without neoclassical assumptions," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 69(1), pages 21-48, February.
    10. E. Grifell-Tatjé & C. Lovell, 2014. "Productivity, price recovery, capacity constraints and their financial consequences," Journal of Productivity Analysis, Springer, vol. 41(1), pages 3-17, February.
    11. Robert J. Hill & Alice O. Nakamura, 2010. "Improving Inflation And Related Performance Measures For Nations: An Introduction," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 1-10, June.
    12. Diewert W.Erwin, 2010. "User Costs versus Waiting Services and Depreciation in a Model of Production," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(6), pages 759-771, December.
    13. D. S. Prasada Rao & Alicia N. Rambaldi & Bert M. Balk, 2015. "On Measuring Regional or Global Growth and Inflation," Discussion Papers Series 552, School of Economics, University of Queensland, Australia.
    14. Ball, V.E. & Färe, R. & Grosskopf, S. & Margaritis, D., 2015. "The role of energy productivity in U.S. agriculture," Energy Economics, Elsevier, vol. 49(C), pages 460-471.
    15. Mark Vancauteren & Bruno Henry de Frahan, 2011. "Trade Policy, Competition and Productivity: The Impact of EU Harmonization in the Dutch Food Processing Industry," De Economist, Springer, vol. 159(4), pages 483-509, December.
    16. Yann, de Mey & Mark, Vancauteren & Frankwin, van Winsen & Erwin, Wauters & Ludwig, Lauwers & Steven, Van Passel, 2013. "Measuring productivity change using alternative input–output concepts: A farm level application using FADN data," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152364, International Agricultural Trade Research Consortium.

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