Skip to main content
SpringerLink
Log in

Productivity measurement for a distribution firm

  • Published:
Journal of Productivity Analysis Aims and scope Submit manuscript

Abstract

The paper derives a consistent accounting framework for the treatment of inventories when measuring the productivity of a distribution firm. The average purchase price of an inventory item during an accounting period must be distinguished from its average selling price and these two average prices should be distinguished from the corresponding balance sheet prices. The accounting framework is implemented for a distribution firm which sold 76,000 separate items. The firm achieved a 9.6 percent per quarter total factor productivity growth rate over 6 quarters.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aldrick Chemical Company. (1984) (1990).Catalog/Handbook of Fine Chemicals. Milwaukee: Aldrich Chemical Company.

    Google Scholar 

  • Blinder, A.S. And L.J. Maccini. (1991). “Taking Stock: A Critical Assessment of Recent Research on Inventories”,The Journal of Economic Perspectives 5, 73–96.

    Google Scholar 

  • Christensen, L.R. and D.W. Jorgenson. (1969). “The Measurement of U.S. Real Capital Input, 1929–1967”.Review of Income and Wealth 15, 293–320.

    Google Scholar 

  • Diewert, W.E. (1978). “Superlative Index Numbers and Consistency in Aggregation”,Econometrica 46, 883–900.

    Google Scholar 

  • Diewert, W.E. (1980). “Aggregation Problems in the Measurement of Capital”. pp. 433–528 inThe Measurement of Capital, Dan Usher (ed.), Chicago The University of Chicago Press.

    Google Scholar 

  • Diewert, W.E. (1992). “Fisner Ideal Output, Input and Productivity Indexes Revisted”.Journal of Productivity Analysis, 3, 211–248.

    Google Scholar 

  • Fisher, I. (1922).The Making of Index Numbers, Boston: Houghton-Mifflin.

    Google Scholar 

  • Fisher, F.M. and K. Shell (1972).The Economic Theory of Price Indexes, New York: Academic Press.

    Google Scholar 

  • Hicks, J.R. (1940). “The Valuation of the Social Income”.Economica 7, 108–124.

    Google Scholar 

  • Jorgenson, D.W. (1963). “Capital Theory and Investment Behavior”.American Economic Review 53, 247–259.

    Google Scholar 

  • Jorgenson D.W. and Z. Griliches. (1967). “The Explanation of Productivity Change”.The Review of Economic Studies 34, 249–283.

    Google Scholar 

  • Statistics Canada. (1988).Gross Domestic Product at Factor Cost by Industry, Cat. No. 61-213, Ottawa: Statistics Canada.

    Google Scholar 

  • United Nations. (1968).A System of National Accounts, New York: United Nations.

    Google Scholar 

  • United Nations. (1993).System of National Accounts 1993, New York: United Nations.

    Google Scholar 

  • White, K.J. (1978). “A General Computer Program for Econometric Methods-SHAZAM”.Econometrica 46, 239–240.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, University of British Columbia, #997-1873 East Mall, V6T 1Z1, Vancouver, BC, Canada

    W. Erwin Dieweri

  2. Dustbane Products, Columbia Distributors Ltd., 1220 SE Marine Drive, V5X 2W1, Vancouver, BC, Canada

    Ann Marie Smith

Authors
  1. W. Erwin Dieweri
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ann Marie Smith
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

The first author is a Professor of Economics at the University of British Columbia and a research associate of the NBER. He thanks the SSHRC of Canada for research support. The second author is a recent graduate of the University of British Columbia.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Erwin Dieweri, W., Marie Smith, A. Productivity measurement for a distribution firm. J Prod Anal 5, 335–347 (1994). https://doi.org/10.1007/BF01073565

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01073565

Keywords

Search

Navigation