Efficiency mensuration in an input-output framework

Abstract EN

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.