The measurement of productivity change (or difference) is usually based on models that make use of strong assumptions such as competitive behavior and constant returns to scale. This survey discusses the basics of productivity measurement and shows that one can dispense with most if not all of the usual, neoclassical assumptions. By virtue of its structural features, the measurement model is applicable to individual establishments and aggregates such as industries, sectors, or economies.

ERIM Article Series (EAS)
Review of Income and Wealth
Erasmus Research Institute of Management

Balk, B.M. (2010). An Assumption-Free Framework for Measuring Productivity Change. Review of Income and Wealth, 56(SUPPL. 1), 224–256. doi:10.1111/j.1475-4991.2010.00388.x