This chapter reviews the ways that economists measure the aggregate economic performance of national economies. Efficiency and productivity analysis using the methodologies of data envelopment analysis and stochastic frontier analysis has made a significant contribution to this challenge after...

We exploit the cross-country differences in economic freedom to examine the link between the quality of institutions and subjective well-being. Using Veenhoven's happiness dataset, the evidence suggests countries with better economic institutions and higher level of economic freedom, captured by...

GDP per hour worked is a measure of labour productivity. It measures how efficiently labour input is combined with other factors of production and used in the production process. Labour input is defined as total hours worked of all persons engaged in production. Labour productivity only...