- Subject index
A General Theory of Competition develops a ground-breaking new theory of competition - `resource-advantage theory'. Recent thinking on competition has assumed the premises, structure and implications of the theory of perfect competition. In his long-awaited book Shelby Hunt draws on economics, management, marketing and sociology to articulate resource-advantage theory. The author proceeds to illustrate how and why his theory may be used to explain and predict economic phenomena with great accuracy. This volume is extremely well-referenced, with detailed source notes.
Chapter 7: Productivity, Efficiency, and Effectiveness
Productivity, Efficiency, and Effectiveness
For all economic entities, be they firms, industries, or entire economies, measures of productivity are ratios of outputs to inputs. For example, the productivity of automobile manufacturers is often measured as the number of labor-hours required to assemble a car. For economies as a whole, the key productivity ratios are those relating gross domestic product (GDP) to a factor of production, for example, labor or capital. Materially abundant economies are generally those that are high in total factor productivity, that is, GDP divided by the total labor and capital employed. As Coase (1998) points out: “The welfare of a human society depends on the flow of goods and services, and this in turn depends on the productivity of ...