Canadian Input–Output-based Multi-factor Productivity Accounts

Statistics Canada's multi-factor productivity accounts are integrated into the Canadian system of national accounts. The company's originality rests, in part, on the application of the standard productivity formula to alternative but related sets of outputs and inputs in a bottom-up approach that covers the whole business sector. The concept of vertical integration plays a central role in establishing relationships between alternative indices, including the relationships between static and dynamic indices. In the static framework, the stock of capital is exogenous. In the dynamic framework, capital goods become endogenous produced inputs. Establishments are seen as exchanging capital services across time periods. Time becomes a primary input of production, the productivity of which is associated with technical knowledge. A new measure of capital services and an extended definition of economic efficiency are finally introduced, which solve some paradoxical results that are obtained with the conentional measure.