Efficiency is the most important objective in economics and this book shows how it can be analyzed using input and output data at all levels of the economy. After his 'Input-Output Economics: Theory and Applications', Thijs ten Raa has extended his research to efficiency analysis. He has contributed to the microeconomic theory of performance measurement, made applications to industries, national economies and international trade, and written on the history of economic thought. Twenty-five new papers, published in the last decade are now collected and interrelated by an introduction, amounting to a unification of theory and applications in efficiency and input-output analyses.Efficiency analysts measure firm performance relative to the best practice, which is determined by a firm (or collection of firms) operating on the frontier of the production possibilities. More precisely, efficiency is relative productivity, where the latter is essentially output per 'unit' of input. On the other hand, input-output analysts study input per 'unit' of output. The concept of the one is the inverse of the other and this insight will help resolve open issues in either branch of economic science. Environmental objectives are shown to be achievable by reallocations of production. Benchmarking theory is developed and used to measure how well (or poor) industries and economies are organized. Papers on the history of economic thought round out the volume.

This timely book explores the relationships between technological change, efficiency, productivity growth and performance. Focusing on the interplay among industries in modern economies, the essays in this volume combine pure theory and empirical applications to provide an input-output analysis of productivity growth that is both broad and in-depth. Thijs ten Raa and Edward N. Wolff lay out a conceptual framework for interrelating alternative productivity and performance measures, unifying input-output and productivity analyses and applying them to scenarios at both the national economy and industry levels. Topics discussed include growth accounting, international trade, outsourcing and productivity spillovers, labor and capital, and efficiency analysis. This fascinating volume offers some of the best work from two of the brightest and best-known minds in the field. Students, professors and researchers working in economic theory, international economics, labor economics and financial and monetary policy will find much of interest in this thoughtful and comprehensive book.

"Microeconomics: Equilibrium and Efficiency" is an innovative textbook that introduces microeconomic theory in an applied way, making use of real-world empirical examples.
Key benefits:
- Concise and intuitive: students will not only become familiar with the building blocks of the subject, but also gain a broad understanding of microeconomic theory and models.
- Empirical, real-world examples: all economic concepts are developed in a measurable way. Performance measures are derived and applied to firms, industries, and national economies.
- Systemic approach: the economy is considered as a system, looking at how its different parts interact, how prices are formed and how markets are interconnected.
- Unique innovations: for example, general equilibrium theory is introduced making use of Negishi's method - that is, equilibrium analysis follows the techniques used in empirical models.
- Coverage of modern topics such as environmental economics, information and optimal search, and the theory of inequality measurement.
- End-of-chapter summaries and exercises, with answers in the appendix.
Thijs ten Raa's unique approach bridges the gap between microeconomic theory and applied economics, helping students understand applied models that are used widely in industry, economic planning, trade, and environmental studies. Written in a lucid, clear and direct style, it is an ideal textbook for advanced undergraduate and graduate students.

In this book the author analyzes measures of consumer well-being. The three main, neoclassical measures of well-being are the compensating variation, the equivalent variation, and consumer's surplus. The question is which of the measures of consumer well-being is the best. This book tackles the question, with a surprising outcome that is contrary to the main opinion in the literature. Prof ten Raa presents a test that measures must pass to track utility. The test will be used to sort measures in the remainder of the book. It will culminate in a variant of consumer's surplus, which he calls the consumer's index, and a generalization that applies to nonhomothetic demands. Variants of the consumer's index are presented, including ones that are applicable to demand functions with income effects, even nonlinear ones. So-called broad measures of consumer well-being, such as the Human Development Index, will be encompassed.

'The dramatic development of global production networks in the last few decades has inspired new analytical insights in the field of international trade and environmental economics. The input output analysis, once considered ''old-fashioned,'' was brought back to the stage as a key analytical tool, and this Handbook's impeccable timing captures these emerging academic interests and refreshes the image of traditional input-output users. This unique publication features multi-dimensional coverage of relevant topics rallying the expertise of statisticians, theorists, and practitioners, and hence is expected to serve a wide range of today s scientific needs. A highly informative read for students, scholars, business persons, and policy-makers alike.' - Satoshi Inomata, IDE-JETRO, Japan The field of input-output analysis is fragmented. Statisticians collect and organize data and construct input-output coefficients. Economists analyze these coefficients and their changes to measure and explain important concepts such as productivity, efficiency and comparative advantages. Applied economists and environmental analysts then build models around input-output matrices for scenario and impact analyses. This authoritative Handbook encompasses all these elements, explaining in detail the treatment and role of input-output statistics in the System of National Accounts. Importantly, it provides a unifying global supply-use framework to tie together many of the unresolved issues in collecting statistics, constructing input-output coefficients, and their use in modeling. Leading experts from international statistical offices and universities provide comprehensive coverage of the field, including history, theory, applications, uncertainty and dynamics. They elucidate the collection of accounting statistics, the construction of input-output tables, and their use in economic and environmental analysis. Furthermore, they examine the building of applied general equilibrium models, the use of these models for efficiency analysis, and the links to stochastic and dynamic input-output analysis. Students and academics studying applied economics and environmental modeling and will find this an enlightening guide to the state of the art. As well as revealing and exploring the theoretical foundations, the Handbook will also act as a useful guide for practitioners. Contributors include: J. Beutel, K. Kratena, B. Los, D.S. Meade, Y. Okuyama, J.M. Rueda-Cantuche, G. Russo, V. Shestalova, K. Swales, U. Temursho, T. ten Raa, K. Turner, R. Wood

This book aims to make the nature of input-output analysis in economics clearly accessible and, contrary to the opinion of many commentators, shows that this type of analysis can be compatible with the doctrines of neoclassical economics.

Thijs ten Raa, author of the acclaimed text The Economics of Input-Output Analysis, now takes the reader to the forefront of the field. This volume collects and unifies his and his co-authors' research papers on national accounting, input-output coefficients, economic theory, dynamic models, stochastic analysis, and performance analysis. The research is driven by the task to analyze national economies. The final part of the book scrutinizes the emerging Asian economies in the light of international competition.

This book aims to make the nature of input-output analysis in economics clearly accessible and, contrary to the opinion of many commentators, shows that this type of analysis can be compatible with the doctrines of neoclassical economics.

This Handbook takes an econometric approach to the foundations of economic performance analysis. The focus is on the measurement of efficiency, productivity, growth and performance. These concepts are commonly measured residually and difficult to quantify in practice. In real-life applications, efficiency and productivity estimates are often quite sensitive to the models used in the performance assessment and the methodological approaches adopted by the analysis. The Palgrave Handbook of Performance Analysis discusses the two basic techniques of performance measurement - deterministic benchmarking and stochastic benchmarking - in detail, and addresses the statistical techniques that connect them. All chapters include applications and explore topics ranging from the output/input ratio to productivity indexes and national statistics.

For businesses seeking to gain the edge over their competitors, benchmarking is an increasingly popular tool used to compare operations and performance. Ten Raa elegantly presents the techniques and theory to explain how performance indices and rankings are developed and how they can be used to improve efficiency, productivity and profitability.

Input-output analysis is the main tool of applied equilibrium analysis. This textbook provides a systematic survey of the most recent developments in input-output analysis and their applications, helping us to examine questions such as: which industries are competitive? What are the multiplier effects of an investment program? How do environmental restrictions impact on prices? Linear programming and national accounting are introduced and used to resolve issues such as the choice of technique, the comparative advantage of a national economy, its efficiency and dynamic performance. Technological and environmental spillovers are analysed, both at the national level (between industries) and the international level (the measurement of globalisation effects). The book is self-contained, but assumes some familiarity with calculus, matrix algebra, and the microeconomic principle of optimizing behaviour. Exercises and review questions are included at the end of each chapter, and solutions at the end of the book.

Problems arise if budgets for services are held constant whilst prices rise. Education, cultural activities and health services are under constant budgetary pressure. The authors argue that the price of commodities is linked to demand and price increases would therefore seem to threaten the very existence of these services. The paradox of these services is that in spite of their exploding costs, demand persists. Policymakers struggle with the problematic question of whether to limit public service budgets as costs for their provision rise. The service sectors of advanced economies are surprisingly vigorous - the employment of an ever increasing share of the labour force is one phenomenon. Economists are perplexed by the interplay of slow service and fast goods productivity growth and wonder why the demand for services is so persistent. The Growth of Service Industries is intended for use by both policymakers and economists and serves as a useful introduction to service productivity analysis.

Input-output analysis is the main tool of applied equilibrium analysis. This textbook provides a systematic survey of the most recent developments in input-output analysis and their applications, helping us to examine questions such as: which industries are competitive? What are the multiplier effects of an investment program? How do environmental restrictions impact on prices? Linear programming and national accounting are introduced and used to resolve issues such as the choice of technique, the comparative advantage of a national economy, its efficiency and dynamic performance. Technological and environmental spillovers are analysed, both at the national level (between industries) and the international level (the measurement of globalisation effects). The book is self-contained, but assumes some familiarity with calculus, matrix algebra, and the microeconomic principle of optimizing behaviour. Exercises and review questions are included at the end of each chapter, and solutions at the end of the book.

Review: 'This is an ideal microeconomics textbook for students who have a solid grounding in micro at the intermediate level. It contains the first and only integrated treatment of general equilibrium and input-output analysis. - Marcus Berliant, Washington University in St. Louis, US 'Microeconomics: Equilibrium and Efficiency is written on the premise that students should be able to take microeconomic theory to the data. Professor ten Raa has succeeded in writing a lucid text that shows the wide applicability of standard theory and its normative implications for a more efficient organization of real world economies.' - Fred Schroyen, Norwegian School of Economics, Bergen, Norway 'This innovative text marries advanced neo-classical theories of general equilibrium with applied approaches to measurement of economic activity. It teaches students a valuable and solid foundation for applying economic insights to understand trade and economic policy in our global economy.' - Robert P. Gilles, Queen's University Management School, Belfast, UK 'Ten Raa's book markedly stands out among the usual micro textbooks. Coherent, well written, rigorous and sharp, with a clear focus, this book will give students an excellent sense for the nature and performance of the market economy.' - Joop Hartog, University of Amsterdam, the Netherlands