Measuring Productivity Change Without Neoclassical Assumptions: A Conceptual Analysis
68 Pages Posted: 21 Nov 2008
Date Written: 17 2008, 11
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 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.
Keywords: producer, profit, profitability, productivity, decomposition, capital, index number theory, HF5686.P86
JEL Classification: C44, M31, M, B41, L11
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