King, M; Qureshi, Z; Katanguru, D R (2026) Optimal Testing in the Economy. NPL Report. IEA 35

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Abstract

Measurement is a fundamental part of an economic infrastructure, supporting the reliability and consistency of information used across production, trade, and regulation. The UK's National Measurement System (NMS) provides the measurement infrastructure that supports accurate, reliable, and internationally comparable measurements throughout the economy. Much of the economic value generated by the NMS comes through Delivering the Measurement Infrastructure (traceability benefits). King and Nayak (2025) develop a framework for these traceability benefits bringing together a number of interconnected and technically complex elements. As a result, the framework can be challenging for non-specialist audiences to engage with. This report focuses on unpacking the first component of that framework, namely, the macroeconomic model of conformance testing. It provides a technical exposition that complements the underlying mathematics with economic intuition. The model characterises the equilibrium level of conformance testing in the economy and enables analysis of how changes in underlying parameters alter the effectiveness of testing. To support interpretation, the framework is operationalised through a calculator that enables exploration of equilibrium outcomes and comparative statics, highlighting the critical role of high‑quality, traceable measurement in sustaining productivity across the economy.

Item Type:	Report/Guide (NPL Report)
NPL Report No.:	IEA 35
Divisions:	Strategy Directorate
Identification number/DOI:	10.47120/npl.IEA35
Last Modified:	22 Sep 2026 13:08
URI:	https://eprintspublications.npl.co.uk/id/eprint/10547