Productivity measurement: Reassessing the production function from micro to macro

Abstract

The productivity growth slowdown in advanced economies during the early decades of the 21st century has led to renewed interest in economic measurement. Measured productivity growth has largely evaporated, yet in many ways, the average person is better off than at any time in history and technological advance is ever evident. Are we simply, or at least in part, mismeasuring productivity change? More fundamentally, are we measuring an outdated or otherwise less relevant economic concept? What should and can we measure in the interest of developing evidence‐based policy solutions to support productivity growth? This paper reviews some of the recent advances in economic measurement and points to an expanded productivity measurement research agenda arising from these questions.