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This paper explores an alternate experimental measure of multifactor productivity growth based on the production frontier, a method that benchmarks observed units (firms or industries) against an estimated best-practice production frontier. This estimated frontier specifies the maximum possible output that can be produced from different combinations of inputs, based on the observed input-output mixes of sampled industries or firms. Benchmarking each unit against such a frontier generates a relative measure of its efficiency compared to what is theoretically possible by following best practice. This measure is based on distance from the estimated production frontier.
A Frontier Approach to Canada-U.S. Multifactor Productivity Performance by Statistics Canada. Micro-Economic Analysis Division is 0 pages long, and a total of 0 words.
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