It measures by how much the efficiency frontier moves outwards given the availability of primary ressources, the technology and the structure of domestic final demand.
Prices are endogenous.
We apply this new measure to the Qu bec economy between 1978 and 1984. We find negative TFP growth rates in most of the manufacturing industries and positive and relatively high growth rates in the service sectors. Elle mesure le d placement de la fronti re d'efficacit d'une conomie, tant donn ses ressources primaires, sa balance commerciale, sa technologie et la structure de sa demande finale domestique. Les prix sont endog nes. It measures by how much the efficiency frontier moves outwards given the availability of primary ressources, the technology and the structure of domestic final demand.