Measuring Productivity and Efficiency Via the Production Function

Abstract

This paper is a survey of recent contributions to and developments in the relationship between efficiency and productivity via the production function. The objective is to provide a brief discussion on data and on the methods of measuring efficiency and productivity. First, we introduce the reader to the measurement of partial and total factor productivity in the context of static and firm - specific modeling. Second, we survey the econometric approach to efficiency analysis. Third. the relationship between productivity growth is reviewed.