This paper presents a productivity growth measure that explicitly accounts for natural capital as an input factor and … productivity measurement for bad outputs and estimates of their shadow prices, while the inclusion of natural capital is discussed … in more depth in a companion paper. As bad outputs are the target of environmental policies, a productivity measure that …

Traditional measures of multi-factor productivity (MFP) growth generally do not recognise natural capital as inputs … into the production process. Since productivity growth is measured as the residual between output and input growth, it will … understanding of the role of natural capital for productivity measurement and as a source of economic growth. To this aim, aggregate …

.6 percentage points in 2015 – large enough to improve the picture of GDP and productivity growth in advanced economies. However …, this would not overturn the conclusion that productivity growth has slowed substantially compared over the past decades. …

scale effect and a residual productivity effect, each of which explains about half of overall MFP change. The scale effect … points to the importance of the demand side and market size for productivity growth. We also compute mark-up rates of prices …