There are two methods of measuring productivity: (1) index numbers of the growth in (aggregate) output compared to the corresponding changes in (aggregate) input use; and (2) econometric estimation of production or cost functions. The measures of productivity are not identical. This chapter begins with a short section on concepts and sources of productivity improvement. Next, in Section 3, the index number approaches to productivity measurement are described, both partial productivity measures and the comprehensive total factor productivity (TFP). Section 4 outlines the econometric approach of cost function estimation. Section 4 is in less detail because this overlaps the coverage of other chapters (Chapter 19 on cost functions and Chapters 35 to 39 on performance of specific modes and infrastructure). A concluding section follows.
Samenvatting