Neoclassical economists argue that competition promotes efficiency. They consider technology as given though. In the long run technological progress is an important determinant of the level of welfare and Schumpeter argued that monopoly rents help entrepreneurs to capture the gains of R&D and...

This Handbook takes an econometric approach to the foundations of economic performance analysis. The focus is on the measurement of efficiency, productivity, growth and performance. These concepts are commonly measured residually and difficult to quantify in practice. In real-life applications,...

Debreu's coefficient of resource allocation is freed from individual data requirements. The procedure is shown to be equivalent to the imposition of Leontief preferences. The rate of growth of the modified Debreu coefficient and the Solow residual are shown to add up to TFP growth. This...

The age structure of capital plays an important role in the measurement of productivity. It has been argued that the slowdown in the 1970's can be ascribed to the aging of the stock of capital. In this paper we incorporate the age structure in productivity measurement. Our final proposition...

1. Introduction- William H. Greene and Thijs ten Raa -- 2. Micro foundations of earnings differences- Tirthatanmoy Das and Solomon W. Polachek -- 3. Performance: The output/input ratio- Thijs ten Raa -- 4. R&D, innovation and productivity- Pierre Mohnen -- 5. The choice of comparable DMUs and...

In the literature, the construction of technical coefficients is linked to flow data (use and make matrices), but stochastics are imposed on the coefficients when multipliers are calculated, by means of the Leontief inverse. Due the nonlinearity of this operation, the multiplier estimates are...