PRODUCTIVITY-MEASUREMENT WITHIN AN INPUT-OUTPUT FRAMEWORK

Input-output provides features for the measurement and analysis of tot al factor productivity (TFP) growth. First, TFP growth can be measured using gross output and incorporating materials as an input. Second, a growth accounting framework can be developed to measure the effect of final output mix changes on aggregate productivity growth. Third. cap ital can be treated as a produced means of production. Fourth, measure s of composite technical change can overcome difficulties engendered b y the substitution of externally provided inputs for those previously provided by the firm. Fifth, TFP growth of secondary production can be analytically separated from that of primary output.