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Three Fundamental Productivity Concepts: Principles and Measurement

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  • Baumol, William J.
  • Wolff, Edward N.

Abstract

The literature on productivity devotes considerable and deserved attention to a variety of measurement problems and to distinctions such as that between labor productivity and total factor productivity. However, some of the basic definitional issues that arise implicitly in many of the discussions do not seem to have been examined to the degree they merit. In this paper, we contrast three different basic concepts of productivity, discuss the differences in their interpretation and significance, and then demonstrate empirically that use of different notions of productivity can give rise to great differences in measurements of productivity growth.
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Suggested Citation

  • Baumol, William J. & Wolff, Edward N., 1985. "Three Fundamental Productivity Concepts: Principles and Measurement," Working Papers 85-40, C.V. Starr Center for Applied Economics, New York University.
    • Handle: RePEc:cvs:starer:85-40
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