U.S. Real Product and Real Factor Input, 1929-1967

TLDR: In this paper, the authors provide a conceptual basis for separating social product and social factor input accounts into price and quantity components, and the resulting estimates are applied to the measurement of total factor productivity and the study of the responsiveness of product and factor intensities to price changes.

Abstract: The objective of this paper is to provide a conceptual basis for separating social product and social factor input accounts into price and quantity components. Despite the essential similarity between concepts of real product and real factor input, the measurement of social factor outlay in constant prices is not well established in social accounting practice. Production accounts are constructed for the United States in current and constant prices, including social product and social factor outlay, for the period 1929–1967. The resulting estimates are applied to the measurement of total factor productivity and the study of the responsiveness of product and factor intensities to price changes.