Introduction to the Conceptual Framework

Abstract

The initial question to address when attempting to model and measure a concept like economic performance is “what does it mean”? Definition, construction, and use of measures representing performance require careful consideration of the underlying conceptual foundation. This in turn requires explicit recognition of the connection between productive performance or productivity and the cost structure. On this basis the theoretical formalization and implementation of appropriate measurement formulas, and interpretation and use of resulting performance measures, may effectively be pursued.