This paper updates the results of an earlier paper (Johnson 1996) exploring productivity
trends 1972-92 prepared for the OECD. Tornqvist indexes are used to compensate for
changes in the mix of outputs and inputs. Capital is charged at service prices. Present
indications are that labour and capital inputs have not increased in the last ten years but total
factor productivity has increased at the rate of around 4 per cent per year reflecting past
investments and adaptation to new challenges. Comparisons are made with indexes based on
static factor shares and suggestions are made on the construction of more ideal index
numbers for measuring productivity change where the data is available
