Performance measurement in an input-output framework

Abstract

This paper fruitfully combines two complementary theories: performance measurement and input-output analysis. Our point of departure is the theory of the consumer, who maximizes utility subject to a budget constraint. His well-being can be measured by the change in the consumption bundle, valued at constant prices. Input-output analysis is invoked to impute the change in this bundle to technical change, a terms-of-trade effect and two types of efficiency change. The analysis is extended to environmental economics. JEL Classification:C67, O47, Q56.