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Does Measurement of Digital Activities Explain Productivity Slowdown? The Case for Australia

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Listed:
  • Derek Burnell
  • Amani Elnasri

Abstract

[eng] The post 2004 slowdown in productivity growth in developed nations has led to speculation that mismeasurement of digital activities within the national accounts may be responsible. The Australian Bureau of Statistics’ (ABS) modelling of potential missing output confirms the findings of Syverson (2017), Ahmad & Schreyer (2016) and Byrne, Fernald & Reinsdorf (2016) that unrecorded digital activities were of insufficient magnitude to explain the productivity slowdown. While there may be room for improvement in data sources and methods more broadly, conceptually digital activities are captured in the National Accounts framework.

Suggested Citation

  • Derek Burnell & Amani Elnasri, 2020. "Does Measurement of Digital Activities Explain Productivity Slowdown? The Case for Australia," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 123-137.
    • Handle: RePEc:nse:ecosta:ecostat_2020_517t_8
    DOI: https://doi.org/10.24187/ecostat.2020.517t.2022
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    References listed on IDEAS

    as
    1. Topp, Vernon & Kulys, Tony, 2012. "Productivity in Electricity, Gas and Water: Measurement and Interpretation," Staff Working Papers 121, Productivity Commission, Government of Australia.
    2. Chad Syverson, 2017. "Challenges to Mismeasurement Explanations for the US Productivity Slowdown," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 165-186, Spring.
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    More about this item

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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