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Measuring Productivity: Lessons from Tailored Surveys and Productivity Benchmarking

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  • David Atkin
  • Amit Khandelwal
  • Adam Osman
Abstract
We use tailored surveys and benchmarking in the flat-weave rug industry to better understand the shortcomings of standard productivity measures. TFPQ performs poorly because of variation in product specifications across firms. Controlling for specifications aligns TFPQ with lab benchmarks. We also collect quality metrics to construct quality productivity (the ability to produce quality given inputs) and find substantial dispersion across firms. This motivates interest in multi-dimensional productivity, or capability. As quality productivity is negatively correlated with TFPQ, TFPR may perform better at capturing capabilities in settings where better firms make products with more demanding specifications that have greater input requirements.

Suggested Citation

  • David Atkin & Amit Khandelwal & Adam Osman, 2019. "Measuring Productivity: Lessons from Tailored Surveys and Productivity Benchmarking," NBER Working Papers 25471, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25471
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    References listed on IDEAS

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    1. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    2. David Atkin & Amit K. Khandelwal & Adam Osman, 2017. "Exporting and Firm Performance: Evidence from a Randomized Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 551-615.
    3. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
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    Cited by:

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    2. Fieler, Ana Cecília & Harrison, Ann E., 2023. "Escaping import competition in China," Journal of International Economics, Elsevier, vol. 145(C).
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    6. Chen, Yutong & Chiplunkar, Gaurav & Sekhri, Sheetal & Sen, Anirban & Seth, Aaditeshwar, 2023. "How Do Political Connections of Firms Matter during an Economic Crisis?," IZA Discussion Papers 16131, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • F0 - International Economics - - General

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