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Measuring Productivity using the Index Number Approach: An Introduction - WP 04/05

Publication Details

  • Measuring Productivity using the Index Number Approach: An Introduction
  • Published: Jun 2004
  • Status: Current
  • Author: McLellan, Nathan
  • JEL Classification: C43; D24; E23
  • Hard copy: Available in HTML and PDF formats only.
 

Measuring Productivity using
the Index Number Approach: An Introduction

New Zealand Treasury Working Paper 04/05

Published: June 2004

Author: Nathan McLellan

Abstract

This paper provides an introduction to productivity measurement using index number techniques. Attention is given to the construction of productivity series using common index number formulae, the economic and axiomatic approaches to selecting an index number formula, and the use of chaining. Special attention is also given to measuring physical capital inputs and quality adjusted labour inputs. Numerical examples are used throughout the paper to illustrate the analysis.

Table of Contents

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Abstract

Table of Contents

List of Tables

List of Figures

1 Introduction

2 Index number approach

3 Chained indices

4 Physical capital stock and the user cost of capital

5 Measuring quality-adjusted labour input

6 Conclusion

References

twp04-05.pdf (378 KB)pp. 26

List of Tables

List of Figures

Acknowledgements

I would like to thank Tony Booth, John Creedy, Kevin Fox, David Law, Peter Mawson, John Morris and Grant Scobie for comments on an earlier draft of this paper.

Disclaimer

The views, opinions, findings, and conclusions or recommendations expressed in this Working Paper are strictly those of the author(s). They do not necessarily reflect the views of the New Zealand Treasury. The New Zealand Treasury takes no responsibility for any errors or omissions in, or for the correctness of, the information contained in this Working Paper. The paper is presented not as policy, but to inform and stimulate wider debate.

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