Callisthenic Productivity. A Challenge for the Traditional Economic Productivity Indicators


  • Iris MIHAI PhD West University of Timisoara, Romania



productivity, measurement, indicator, callisthenic productivity


Measuring economic productivity is a challenging task, mainly because we cannot isolate completely the effects produced by individual inputs, nor can we measure precisely how their interaction affects the overall result. In this paper we will test a new way of measuring economic productivity at country level that takes into account also the social dimension and the sustainability over time - we call it callisthenic productivity. The indicator has been built by measuring economic productivity as a sum of labor and capital productivity, which afterwards we adjust by using the Gini coefficient, the human development index, the biocapacity and the ecologic footprint of consumption. The end result is not necessarily a better way to represent a country’s productivity, but rather a better way to compare the ability of countries to generate effective, reliable and sustainable economic productivity.


Ackerberg, D. C., Benkard, L., Berry, S., & Pakes, A. (2007). Econometric Tools for Analyzing Market Outcomes. In J. J. Heckman & E. E. Leamer (Eds.), Handbook of Econometrics, Volume 6A (pp. 4171-4276). Elsevier.

Aoyama, H., Yoshikawa, H., Iyetomi, H., & Fujiwara, Y. (2010). Productivity dispersion: fact, theory and implications. Journal of economic interaction and coordination, 5, 27-54.

Asplund, M., & Nocke, V. (2006). Firm Turnover in Imperfectly Competitive Markets. Review of Economic Studies, 73(2), 295-327.

Badinger, H. (2008). Trade policy and productivity. European Economic Review, 52, 867-891.

Bandiera, O., Barankay, I., & Rasul, I. (2009). Social Connections and Incentives in the Workplace: Evidence from Personnel Data. Econometrica, 77(4), 1047-1094.

Becchetti, L., Castriota, S., & Tortia, E. C. (2013). Productivity, wages and intrinsic motivations. Small business economics, 41, 379-399.

Bennet, T. L. (1920). The Theory of Measurement of Changes in Cost of Living. Journal of the Royal Statistical Society, 83(3), 455-462.

Bloom, N., & Reenen, J. V. (2007). Measuring and Explaining Management Practices across Firms and Countries. Quarterly Journal of Economics, 122(4), 1351-1408.

Blundell, R., & Bond, S. R. (2000). GMM Estimation with Persistent Panel Data: An Application to Production Functions. Econometric Reviews, 19(3), 321-40.

Caves, D. W., Christensen, L. R., & Diewert, W. E. (1982). Multilateral Comparisons of Output, Input and Productivity Using Superlative Index Numbers. Economic Journal, 92(365), 73-86.

Chambers, R. (1996). A New Look at Exact Input, Output, Productivity and Technical Change Measurement. Working Papers 197840, Department of Agricultural and Resource Economics, University of Maryland, College Park.

Chatzimichael, K., & Tzouvelekas, V. (2013). Human capital contributions to explain productivity differences. Journal of Productivity Analysis, 41(3), 399-417.

Diewert, W. E. (1992). Fisher ideal output, input and productivity indexes revisited. Journal of Productivity Analysis, 3(3), 211-248.

Ericson, R., & Pakes, A.(1995). Markov-Perfect Industry Dynamics:A Framework for Empirical Work. Review of Economic Studies, 62(1), 53-82.

Fisher, I. (1922). The Making of Index Numbers. Houghton-Mifflin.

Foster, L., Haltiwanger, J., & Syverson, C. (2008). Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?. American Economic Review, 98(1), 394-425.

Fulginiti, L. E., & Perrin, R. K. (2005). Productivity and welfare. Journal of productivity analysis, 24, 133-155.

Garicano, L., & Heaton, P. (2007). Information Technology, Organization, and Productivity in the Public Sector: Evidence from Police Departments. Journal of Labor Economics, 28(1), 167-201.

Griliches, Z., & Mairesse, J. (1998). Production Functions: The Search for Identification. NBER Working Paper Series, Working Paper no. 5067.

Hopenhayn, H. A. (1992). Entry, Exit, and Firm Dynamics in Long Run Equilibrium. Econometrica, 60(5), 1127-1150.;2-B

Ilmakkunas, P., & Piekkola, H. (2014). Intangible investment in people and productivity. Journaal of productivity analysis, 41, 443-456.

Jovanovic, B. (1982). Selection and the Evolution of Industry. Econometrica, 50(3), 649-670.

Lazear, E. P. (2000). Performance Pay and Productivity. American Economic Review, 90(5), 1346-1361.

Levinsohn, J., & Petrin, A. (2003). Estimating Production Functions Using Inputs to Control for Unobservables. Review of Economic Studies, 70(2), 317-341.

Melitz, M. J. (2003). The Impact of Trade on Intraindustry Reallocations and Aggregate Industry Productivity. Econometrica, 71(6), 1695-1725.

Mihai, I. (2019). Callisthenic Productivity - A Proposal for a New Productivity Indicator. Eurasian Business Review, 9, 40822.

Olley, G. S., & Pakes, A. (1996). The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica, 64(6), 1263-97.

Restuccia, D., & Rogerson, R. (2013). Misallocation and productivity. Review of Economic Dynamics, 16(1), 1-10.

Rios-Rull, J. V, & Santaeulalia-Llopis, R. (2010). Redistributive shocks and productivity shocks. Journal of Monetary Economics, 57, 931-948.

Sachs, A., & Kundu, A. (2015, November 13). The Unfinished Business of Organizational Transformation. ThoughtWorks.

Samuelson, P., & Nordhaus, W. (1995). Economics (15th ed.). McGraw-Hill.

Törnqvist, L. (1936). The Bank of Finland's Consumption Price Index. Bank of Finland Monthly Bulletin, 10, 28-36.




How to Cite

MIHAI, I. (2021). Callisthenic Productivity. A Challenge for the Traditional Economic Productivity Indicators. Logos Universality Mentality Education Novelty: Economics & Administrative Sciences, 6(1), 01-19.

Publish your work at the Scientific Publishing House LUMEN

It easy with us: publish now your work, novel, research, proceeding at Lumen Scientific Publishing House

Send your manuscript right now