Productivity Measurement in Manufacturing and the Expenditure Approach
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Productivity Measurement in Manufacturing and the Expenditure Approach. / Schjerning, Bertel; Sørensen, Anders.
In: Review of International Economics, Vol. 16, No. 2, 2008, p. 327-340.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Productivity Measurement in Manufacturing and the Expenditure Approach
AU - Schjerning, Bertel
AU - Sørensen, Anders
PY - 2008
Y1 - 2008
N2 - This paper studies conversion factors based on the expenditure approach and evaluates the appropriateness for international comparisons of output levels in manufacturing. We apply a consistency check based on the insight that relative productivity levels should be invariant to the choice of base year. Consequently, convergence parameters and dispersion of productivity across countries should also be unaffected by this choice. The results are disappointing: relative measures of productivity depend heavily of the choice of base year and change systematically as the base years roll forward. The conclusion is insensitive to the applied method for developing conversion factors. The implication is that we cannot measure relative productivity levels in manufacturing across countries using the expenditure approach.
AB - This paper studies conversion factors based on the expenditure approach and evaluates the appropriateness for international comparisons of output levels in manufacturing. We apply a consistency check based on the insight that relative productivity levels should be invariant to the choice of base year. Consequently, convergence parameters and dispersion of productivity across countries should also be unaffected by this choice. The results are disappointing: relative measures of productivity depend heavily of the choice of base year and change systematically as the base years roll forward. The conclusion is insensitive to the applied method for developing conversion factors. The implication is that we cannot measure relative productivity levels in manufacturing across countries using the expenditure approach.
U2 - 10.1111/j.1467-9396.2007.00720.x
DO - 10.1111/j.1467-9396.2007.00720.x
M3 - Journal article
VL - 16
SP - 327
EP - 340
JO - Review of International Economics
JF - Review of International Economics
SN - 0965-7576
IS - 2
ER -
ID: 8878665