Productivity Measures and Sustainable Prosperity

Seoul Journal of Economics, 2007 Spring Issue

University of Alberta School of Business Research Paper No. 2013-298

Posted: 5 Jun 2013

See all articles by W. Erwin Diewert

W. Erwin Diewert

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Alice Orcutt Nakamura

University of Alberta - School of Business

Date Written: August 1, 2006

Abstract

The government of Korea is striving to achieve more rapid, and sustainable, increases in economic output. We begin by reviewing measures national governments can use to monitor progress toward achieving sustainable prosperity. The various indexes each involve a comparison of some measure of total output volume with a measure of the total volume for specified input factors. The total output measure most used by national statistical agencies is gross domestic product (GDP). We recommend other output measures that would better capture exchange rate effects, efficiency gains in intermediate product use, and the depreciation of durable assets. The recommendations concerning the treatment of durables are of special relevance for monitoring progress toward sustainable prosperity. We also report on progress toward accounting for the use of natural resource assets and human environmental impacts. We conclude with some thoughts on the meaning of sustainable prosperity and options for achieving this.

Keywords: Total factor productivity, Multifactor productivity, Labour productivity, Living standards, Gross versus net output, Depreciation models

Suggested Citation

Diewert, W. Erwin and Nakamura, Alice Orcutt, Productivity Measures and Sustainable Prosperity (August 1, 2006). Seoul Journal of Economics, 2007 Spring Issue, University of Alberta School of Business Research Paper No. 2013-298, Available at SSRN: https://ssrn.com/abstract=2274449

W. Erwin Diewert (Contact Author)

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada
604-822-2544 (Phone)
604-822-5915 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Alice Orcutt Nakamura

University of Alberta - School of Business ( email )

2-32C Business Building
Edmonton, Alberta T6G 2R6
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
273
PlumX Metrics