This book studies the idea behind the comprehensive development of total factor productivity and the index number innovations. The volume also analyses the measurement of productivity growth and the usefulness of GDP measurement as well as perennial problems in measurement of output of certain...

Estimates of total factor productivity growth, a measure of increases in the efficiency of production, have traditionally been based on a two-factor model of labor and fixed capital. Because profits are measured residually in the System of National Accounts, they implicitly include rents on...