Productivity Measurement Some Theoretical Underpinnings

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Productivity Measurement Some Theoretical Underpinnings
Zenon S Zannetos
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Deming sees complexity in quality control and blind faith in computers as major causes of productivity decline. Our framework can account and empirically test this conculsion by measuring the impact of change in quantities of inputs classified by quality, on productivity ceteris paribus. Based on our theoretical model we expect negative correlation.
A. Etzioni sees oil price hikes and obsolescence of capital as major causes of productivity decline. Our framework can account and empirically test
... this conclusion by measuring the impact of changes in prices and quantities of inputs and quantity, classified by quality, of output on producivity ceteris paribus. Based on our theoretical model we expect the correlation to be negative with respect to inputs and positive with respect to output.
M. Friedman sees high marginal tax rates, inflation and excessive governmental regulation as major causes of productivity decline. Our framework cannot account for macroeconomic effects such as tax changes but can account and empirically test his other conclusitions by measuring the impact of changes in price of output, input, and quantity of input mandated by regulation (e.


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