ABSTRACT
The efficiency of a producer or an industry can be defined in two ways: as an ability to economize on inputs, or as an ability to obtain high output with given inputs. The most direct way to measure efficiency growth in the production of a commodity is to look at the rate of rise of the commodity's price. A more serious problem is that direct use of prices in measuring efficiency is possible only where we are measuring the efficiency of the entire economy in producing a particular commodity. Another approach to efficiency measurement is based on productivity ratios. Input productivities have one advantage over prices as an efficiency measure: they can be computed on an industry basis. Statistics on labor input in the construction industry are available. Reliable price indexes are available for certain types of heavy construction with relatively easily measured output.
