By AndreÌ Marty
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What the new measures need is the rate of change in the prices of the primary inputs associated with capital used in industry j . If there are advances in the 1. Theoretical framework 43 productivity of the capital goods industries, then any waiting in industry j can result in a larger flow of capital goods and their associated services in industry j . The efficiency of waiting will be increasing, and therefore the price of waiting will be rising faster than the price or net rental of the services of the capital goods.
Simple input-output matrices: quantities The information contained in the input-output accounts can be used to show important technological interdependence among industries. Consider now the yth row of the intermediate part of Table 1-1. It is, as has been shown, £ PjMji + PjCj+ 2 Pj AKj, = Qj (1-7) The prices cancel, and we have Qj (1-8) If we define intermediate input-gross output coefficients as aiJ = MiJ/Qj, then the row may be expressed as the price of capital services (in the neo-classical sense) of the same kind will be the same in all industries (salespeople from firms engaged in very different activities will pay the same rentals for the same cars at Canadian airports).
Increases in them are accounted for to a precisely measurable extent by technical progress. The producibility of traditionally conceived capital inputs is rigorously accounted for by the new measures. Since the primary inputs are labour, land, and waiting, the new multifactor productivity measures also reflect the rate at which the real incomes of the owners and providers of the services of labour, land, and waiting will be changing through time because of advances in knowledge. Consider the "price side" of our new productivity measures, particularly with respect to the net returns to capital.