We consider the lack of consensus about an appropriate theoretical framework linking sub-indicators as a defining characteristic of composite indicators. This intrinsic feature implies uncertainties about the appropriate normalisation and aggregation of the raw data. The two are related: index theory offers some valuable guidelines about their connection. Yet these do not fully solve the basic problem of expert disagreement. We embed such (residual) disagreement in the aggregation method itself. Specifically, we apply an impartial benefit-of-the-doubt weighting procedure, where weight restrictions incorporate the available information on experts' opinions. We apply this procedure to the dynamic performance assessment of EU Internal Market effects, thereby highlighting its capacity to disaggregate member states' observed performance shifts into changes relative to benchmarks and performance changes of the benchmarks (i.e. catching up versus genuine progress). Our results indicate that the latter factor is more important in explaining the observed progress.

One Market, One Number? A Composite Indicator Assessment of EU Internal Market Dynamics

. TFP is interpreted in the literature in different, mutually contradictory ways. Changes in TFP are shown to measure not technological change, only the super-normal returns to investing in such change – returns that exceed the full opportunity cost of the activity. Thus, in the limit, technological change can proceed with unchanged TFP. Measuring the effects of technological change instead requires counterfactual estimates. Reasons why changes in TFP are imperfect measures of super normal returns are also studied – reasons connected with the timing of output responses, the treatment of R&D in the national accounts, the omission of resource inputs, and two types of aggregation.



La productivite totale des facteurs et la mesure du changement technologique.  La productivite totale des facteurs (PTF) est interpretee dans la litterature de manieres differentes et mutuellement contradictoires. On montre que les changements dans la PTF ne mesurent pas le changement technologique, mais seulement les rendements supra-normaux sur les investissements dans de tels changements – des rendements qui depassent le plein cout d’opportunite de cette activite. Donc, a la limite, le changement technologique peut proceder sans que la PTF change. Mesurer les effets du changement technique reclame des evaluations d’hypotheses de rechange. Les raisons pour lesquelles les changements dans la PTF sont des mesures imparfaites des rendements supra-normaux sont aussi etudiees – raisons connectees avec la reponse des niveaux de production, le traitement de la R&D dans les comptes nationaux, l’omission des intrants de ressources, et deux types d’agregation.

http://xcsc.xoc.uam.mx/apymes/webftp/documentos/biblioteca/Total%20factor%20productivity%20and%20the%20measurement%20of%20technological%20change.pdf

Total factor productivity and the measurement of technological change

One market, one number? A composite indicator assessment of EU internal market dynamics☆

In this paper we examine the determinants of the efficiency and productivity of the banking systems of seven central and east European countries during a five-year period, from 2004 to 2008. Two approaches are used to examine the efficiency of the banking industry in central and east European countries: stochastic frontier analysis and data envelopment analysis. The empirical results show that the average efficiency of banks in central and east European countries grew in the period analyzed. The improvement may be due to increased competition upon EU accession and the entry of foreign banks, as well as to extensive legislative changes that led banks to become more efficient. Based on the results, we see that the highest level of technical efficiency is recorded for the banking systems of Romania and the Czech Republic, and the lowest is recorded for Slovenia. Looking at the average efficiency scores for each country, we observe significant variation across the banking systems of the central and east Europ...

The Determinants of Bank Efficiency and Productivity Growth in the Central and Eastern European Banking Systems

This is the author's final draft of an article for which the publisher's official version is available electronically from doi:10.1017/S1365100509090233

https://kuscholarworks.ku.edu/bitstream/handle/1808/13142/200906.pdf;sequence=3

Introduction to Measurement with Theory

This paper explores the definitions and properties of total factor productivity growth (TFPG) indexes, focusing especially on the Paasche, Laspeyres, Fisher, Tornqvist, and implicit Tornqvist ones. These indexes can be evaluated from observable price and quantity data, and certain of these are shown to be measures of TFPG concepts and theoretical indexes that have been proposed in the literature. The mathematical relationships between these and quantity aggregates, financial measures, and price and quantity indexes are explored. Decompositions of the productivity growth indexes are also given. The paper concludes with a brief overview of some limitations on our analysis.

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Buchanan Tower

Papers

Index Number Concepts, Measures and Decompositions of Productivity Growth