Intrasectoral transactions: the most important productivity statistic you’ve never heard of

Productivity measurement is, in theory, a simple science. Dividing a measure of output by a measure of inputs yields a measure of the efficiency with which inputs are transformed into outputs. In practice, however, productivity measurement is a complex endeavor. Exactly what outputs are we trying to measure? And what exact inputs are being transformed? Small details in how these questions are answered can strongly influence the resulting conclusions.