Alternative output, input and income concepts for the production accounts

W. Erwin Diewert1,2, Kevin J. Fox2
1University of British Columbia, Vancouver, Canada
2UNSW, Sydney, Kensington, Australia

Tóm tắt

Definitions of output and input are key to studies of productivity analysis, as they are to the national accounts of countries. This paper systematically reviews alternative definitions at production unit and aggregate levels, illustrating the different perspectives that they provide on production and income, and making the case for their use in understanding different aspects of firm and country economic performance.

Tài liệu tham khảo

Anthony RN (1973) Accounting for the cost of equity. Harv Bus Rev 51:88–102 Babbage C (1835) On the economy of machinery and manufactures. 4th edn. Charles Knight, London Balk BM (2010) An assumption-free framework for measuring productivity change. Rev Income Wealth 56:S224–S256 Balk BM (2011) Measuring and decomposing capital input cost. Rev Income Wealth 57:490–512 Böhm-Bawerk EV (1891) The positive theory of capital. G.E. Stechert, New York Brynjolfsson E, Collis A, Diewert WE, Eggers F, Fox KJ (2019) GDP-B: accounting for the value of new and free goods in the digital economy, NBER working paper 25695, Cambridge, MA. https://www.nber.org/papers/w25695 Canning JB (1929) The economics of accountancy. The Ronald Press Company, New York Christensen LR, Jorgenson DW (1969) The measurement of U.S. real capital input, 1929-1967. Rev Income Wealth 15:293–320 Church AH (1901) The proper distribution of establishment charges, Parts I, II, and III. Eng Mag 21:508–517. Corrado C, Fox KJ, Goodridge P, Haskel J, Jona-Lasinio C, Sichel D, Westlake S (2017) Improving GDP: demolishing, repointing or extending? joint winning entry, Indigo Prize 2017, https://www.letterone.com/media/1847/indigo-journal-december-2017.pdf Coyle D, Mitra-Kahn B (2017) Making the future count, joint winning entry, Indigo Prize 2017, https://www.letterone.com/media/1847/indigo-journal-december-2017.pdf Daines HD (1929) The changing objectives of accounting. Account Rev4:94–110 Davidson S, Stickney CP, Weil RL (1976) Inflation Accounting. McGraw-Hill, New York Diewert WE (1974) Intertemporal consumer theory and the demand for durables. Econometrica 42:497–516 Diewert WE (1990) The measurement of productivity. Bull Econ Res44:163–198 Diewert WE (1992) Fisher ideal output, input and productivity indexes revisited. J Product Anal 3:211–248 Diewert WE (2005a) Issues in the Measurement of Capital Services, Depreciation, Asset Price Changes and Interest Rates. In: Corrado C, Haltiwanger J, Sichel D (eds.) Measuring Capital in the New Economy. University of Chicago Press, Chicago, p 479–542 Diewert WE (2005b) On Measuring Inventory Change in Current and Constant Dollars, Discussion Paper No. 05-12. Department of Economics, The University of British Columbia, Vancouver, Canada, V6T 1Z1 Diewert WE (2006) Comment. In: Jorgenson DaleW, Landefeld JSteven, Nordhaus WilliamD (eds.) A New Architecture for the U.S. National Accounts, NBER, Studies in Income and Wealth, Volume 66. University of Chicago Press, Chicago, p 287–307 Diewert WE (2014) The treatment of financial transactions in the SNA: a user cost approach. EURONA 2014/1:74–89 Diewert WE, Morrison CJ (1986) Adjusting output and productivity indexes for changes in the terms of trade. Econ J 96:659–679 Diewert WE, Fox KJ (1999) Can measurement error explain the productivity paradox? Can J Econ 32:251–280 Diewert WE, Lawrence DA (2000) Progress in measuring the price and quantity of capital. In: Lau LJ (ed.) Econometrics and the Cost of Capital: Essays in Honor of Dale W. Jorgenson. The MIT Press, Cambridge MA, p 273–326 Diewert WE, Nakamura Diewert AO (2003) Index number concepts, measures and decompositions of productivity growth. J Product Anal 19:127–159 Diewert WE, Fox KJ (2018) Alternative user costs, productivity and inequality in US Business Sectors. In: Green WH, Khalaf L, Makdissi P, Veall M, Voia M-C (eds.) Productivity and Inequality. Springer, New York, p 21–69 Diewert WE, Fixler D, Zieschang K (2016) Problems with the measurement of banking services in a national accounting framework. In: Hartwick JohnM (ed.) National Accounting and Economic Growth. Edward Elgar Publishing, Cheltenham UK, p 117–176 Diewert WE (1977) Walras’ Theory of capital formation and the existence of a temporary equilibrium, In E. Schwödiauer (ed.) Equilibrium and Disequilibrium in Economic Theory, Reidel Publishing Co, Dordrecht, Holland, pp. 73–126 Diewert WE, KJ Fox (2016) The user cost of non-renewable resources and green accounting, vancouver school of economics, university of british Columbia discussion Paper 16-01, Vancouver, Canada, V6T 1Z1 Edwards EO, Bell PW (1961) The Theory and Measurement of Business Income. University of California Press, Berkeley, California Färe R, Grosskopf S, Norris M, Zhang Z (1994) Productivity growth, technical progress and efficiency change in industrialized countries. Am Econ Rev 84:66–83 Fernald J, Inklaar R (2020) Does disappointing european productivity growth reflect a slowing trend? Weighing the evidence and assessing the future. Int Product Monit 38:104–135 Fisher I (1922) The Making of Index Numbers. Houghton-Mifflin, Boston Garcke E, Fells JM (1893) Factory Accounts: Their principles and practice, 4th edn. C. Lockwood and Son, London. Griliches Z (1963) Capital stock in investment functions: some problems of concept and measurement, pp. 115-137 in Measurement in Economics, C. Christ and others (eds.), Stanford California: Stanford University Press; reprinted as pp. 123-143 in Technology, Education and Productivity, Z. Griliches (ed.), (1988), Oxford: Basil Blackwell Hayek FA v (1941) Maintaining capital intact: a reply. Economica 8:276–280 Hicks J (1973) Capital and Time: A Neo-Austrian Theory. Clarendon Press, Oxford Hicks JR (1946) Value and Capital. 2nd edn. Clarendon Press, Oxford Hicks JR (1961) The measurement of capital in relation to the measurement of other economic aggregates. In: Lutz FA, Hague DC (eds.) The Theory of Capital. Macmillan, London, p 18–31 Ijiri Y (1979) A defence of historical cost accounting. In: Wanless PT, Forrester DAR (eds.) Readings in Inflation Accounting. John Wiley and Sons, New York, p 62–74 Jorgenson DW (1963) Capital theory and investment behaviour. Am Econ Rev 53(2):247–259 Jorgenson DW (1989) Capital as a factor of production. In: Jorgenson DW, Landau R (eds.) Technology and Capital Formation. The MIT Press, Cambridge MA, p 1–35 Jorgenson DW (1996b) Investment: Volume 2; Tax Policy and the Cost of Capital. The MIT Press, Cambridge, Massachusetts Jorgenson DW (1996a) Empirical studies of depreciation. Econ Inq 34:24–42 Jorgenson DW, Griliches Z (1967) The explanation of productivity change. Rev Econ Stud 34:249–283 Jorgenson DW, Griliches Z (1972) Issues of growth accounting: a reply to Edward F. Denison. Surv Curr Bus 55(5):65–94. Kohli U (1990) Growth accounting in the open economy: parametric and nonparametric estimates. J Econ Soc Meas 16:125–136 Kumar S, Russell RR (2002) Technological change, technological catch-up, and capital deepening: relative contributions to growth and convergence. Am Econ Rev 92:527–548 Malinvaud E (1953) Capital accumulation and the efficient allocation of resources. Econometrica 21:233–268 Marshall A (1920) Principles of Economics. 8th edn. Macmillan, London OECD (2018) Beyond GDP: measuring what counts for economic and social performance, OECD, Paris. https://www.oecd.org/publications/beyond-gdp-9789264307292-en.htm Peasnell KV (1981) On capital budgeting and income measurement. Abacus 17:1 Pigou AC (1941) Maintaining capital intact. Economica 8:271–275 Rymes TK (1968) Professor read and the measurement of total factor productivity. Can J Econ 1:359–367 Rymes TK (1983) More on the measurement of total factor productivity. Rev Income Wealth 29:297–316 Samuelson PA (1961) The evaluation of ‘social income’: capital formation and wealth. In: Lutz FA, Hague DC (eds.) The Theory of Capital. Macmillan, London, p 32–57 Schreyer P (2001) OECD Productivity Manual: a Guide to the Measurement of Industry-Level and Aggregate Productivity Growth. OECD, Paris Schreyer P (2009) Measuring Capital: OECD Manual 2009. 2nd edn. OECD, Paris Solow RM (1957) Technical change and the aggregate production function. Rev Econ Stat 39:312–320 Spant R (2003) Why net domestic product should replace gross domestic product as a measure of economic growth. Int Product Monit 7:39–43 Sterling RR (1975) Relevant financial reporting in an age of price changes. J Account 139:42–51 Stiglitz JE, Sen A, Fitoussi JP (2009) Report by the Commission on the Measurement of Economic Performance and Social Progress, Eurostat. https://ec.europa.eu/eurostat/documents/118025/118123/Fitoussi+Commission+report United Nations (2009) System of National Accounts 2008. European Commission, IMF, OECD, UN and World Bank, New York von Neumann J (1937) “Über ein Ökonomisches Gleichungssystem und eine Verallgemeinerung des Brouwerschen Fixpunktsatzes”, Ergebnisse eines Mathematische Kolloquiums 8, 73–83; translated as “A Model of General Economic Equilibrium. Rev Econ Stud (1945-6) 12:1–9 Walras L (1954) Elements of Pure Economics, a translation by W. Jaffé of the Edition Définitive (1926) of the Eléments d’économie pure, first edition published in 1874. Richard D. Irwin, Homewood, Illinois Walsh CM (1901) The Measurement of General Exchange Value. Macmillan and Co, New York