On the Cambridge Correction to the Measurement of Productivity in Manufacturing

Thomas Rymes

No 00-08, Carleton Economic Papers from Carleton University, Department of Economics

Abstract: Apparent 'gaps' in productivity between Canadian and U.S. manufacturing industries raise policy, theoretical and measurement issues. At a low level, one asks if such gaps are 'just'artifactual - a problem of measurement error. At a high level, issues of capital theory are involved. I position this paper between these two levels, dealing with theoretical and measurement matters which should be resolved before policy problems are discussed. I claim the conceptual and measurement problems are severe enough to cast much doubt on how reliable any 'gaps' said to exist might be.

Pages: 23 pages
Date: 2000-06-25
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Published: Carleton Economic Papers

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