Efficiency is the most important objective in economics and this book shows how it can be analyzed using input and output data at all levels of the economy. After his 'Input-Output Economics: Theory and Applications', Thijs ten Raa has extended his research to efficiency analysis. He has contributed to the microeconomic theory of performance measurement, made applications to industries, national economies and international trade, and written on the history of economic thought. Twenty-five new papers, published in the last decade are now collected and interrelated by an introduction, amounting to a unification of theory and applications in efficiency and input-output analyses.Efficiency analysts measure firm performance relative to the best practice, which is determined by a firm (or collection of firms) operating on the frontier of the production possibilities. More precisely, efficiency is relative productivity, where the latter is essentially output per 'unit' of input. On the other hand, input-output analysts study input per 'unit' of output. The concept of the one is the inverse of the other and this insight will help resolve open issues in either branch of economic science. Environmental objectives are shown to be achievable by reallocations of production. Benchmarking theory is developed and used to measure how well (or poor) industries and economies are organized. Papers on the history of economic thought round out the volume.
Contents: - Debreu's Coefficient of Resource Utilization, the Solow Residual, and TFP: The Connection by Leontief Preferences (Thijs ten Raa)
- The Solow Residual, Domar Aggregation, and Inefficiency: A Synthesis of TFP Measures (Thijs ten Raa and Victoria Shestalova)
- Benchmarking and Industry Performance (Thijs ten Raa)
- Performance Measurement in an Input-Output Framework (Thijs ten Raa)
- Firm Efficiency, Industry Performance and the Economy: Three-Way Decomposition with an Application to Andalusia (Antonio F Amores and Thijs ten Raa)
- Supply-Use Framework for International Environmental Policy Analysis (Thijs ten Raa and Victoria Shestalova)
- Complementarity in Input–Output Analysis and Stochastics (Thijs ten Raa and Victoria Shestalova)
- Efficiency Measures for Industrial Organization (Thijs ten Raa)
- Monopoly, Pareto and Ramsey Mark-ups (Thijs ten Raa)
- Consumer Surplus and CES Demand (Thijs ten Raa)
- Homothetic Utility, Roy's Lemma and Consumer's Surplus (Thijs ten Raa)
- The Consumer's Index (Thijs ten Raa)
- Performance: The Output/Input Ratio (Thijs ten Raa)
- The Relative Performance of Formal and Informal Sectors in India (Amarendra Sahoo and Thijs ten Raa)
- Wage-Productivity Differentials and Indian Economic Efficiency (Amarendra Sahoo and Thijs ten Raa)
- The Choice of Model in the Construction of Industry Coefficients Matrices (José M Rueda-Cantuche and Thijs ten Raa)
- Testing Assumptions Made in the Construction of Input-Output Tables (José M Rueda-Cantuche and Thijs ten Raa)
- The Problem of Negatives Generated by the Commodity Technology Model in Input-Output Analysis: A Review of the Solutions (Thijs ten Raa and José M Rueda-Cantuche)
- The Use-Make Framework and the Derivation of Functional Forms in Production Theory (Thijs ten Raa)
- Linkages, Fields of Influence and Key Sectors (Thijs ten Raa)
- Professor Jones' Re-Appraisal of Heckscher–Ohlin Trade Flows (Thijs ten Raa)
- Facets of Innovation and Stages of Development (Thijs ten Raa)
- Leontief's Legacy (Thijs ten Raa)
- Wassily Leontief: In Appreciation (William J Baumol and Thijs ten Raa)
- Anne Carter and Input-Output: Technology, Trade and Pollution (Thijs ten Raa and William J Baumol)
Readership: Undergraduates, graduates and researchers who are interested in efficiency analysis and input-output analysis and their empirical applications. Efficiency;Input-Output;Benchmarking;Performance Measurement;TFP;Environmental Policy Analysis;Mark-ups;Consumer Surplus;CES Demand;Linkages;Heckscher-Ohlin Trade Flows;Leontief0
Key Features:- Unification of two branches of economics: efficiency analysis and input-output analysis. Development of the theories are combined with empirical applications
- Twenty five state of the art contributions in numerous journals and books are consolidated and made easily accessible
