A Formula for Measuring Productivity in Distribution 111

The formula which is set forth below rests on the assumption that an index of productivity is a ratio between input and output. Thus the basic problem is simply that of developing suitable expressions to represent input and output in distribution. A practical index should of course be one which makes use of data which are readily available. At the present rather speculative stage of consideration it is justifiable to conceive of an ideal index in relation to the objectives of measurement and leave the problem of collecting the necessary data for discussion at a later time. It is believed, however, that all of the data required could be readily obtained by various research and statistical methods.