IDEAS home Printed from https://ideas.repec.org/a/oup/cesifo/v49y2003i1p27-47..html
   My bibliography  Save this article

Lessons for Europe from the U.S. Growth Resurgence

Author

Listed:
  • Dale W Jorgenson
  • Mun S Ho
  • Kevin J Stiroh

Abstract

This paper analyses the sources of U.S. labour productivity growth in the late 1990s and presents projections for both output and labour productivity growth. We show that investment in information technology (IT) played a substantial role in the U.S. productivity revival and that similar trends are evident in data for other leading OECD countries. We then outline a methodology for projecting trend output and productivity growth for the broadly defined U.S. economy. Our base-case projection puts trend productivity growth at 1.78 percent per year over the next decade with a range of 1.14 to 2.38 percent, reflecting fundamental uncertainties about the rate of technical progress in IT-production and investment in IT-equipment and software. Our central projection is below the average growth rate of 2.07 percent during 1995 -2000. Similar projections for Europe must await more complete information. (JEL J2)

Suggested Citation

  • Dale W Jorgenson & Mun S Ho & Kevin J Stiroh, 2003. "Lessons for Europe from the U.S. Growth Resurgence," CESifo Economic Studies, CESifo Group, vol. 49(1), pages 27-47.
    • Handle: RePEc:oup:cesifo:v:49:y:2003:i:1:p:27-47.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/cesifo/49.1.27
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raquel Ortega‐Argilés & Mariacristina Piva & Marco Vivarelli, 2014. "The transatlantic productivity gap: Is R&D the main culprit?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(4), pages 1342-1371, November.
    2. Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "ICT and Productivity in Europe and the United States Where Do the Differences Come From?," CESifo Economic Studies, CESifo, vol. 49(3), pages 295-318.
    3. Welfe, Wladyslaw, 2011. "Long-term macroeconometric models: The case of Poland," Economic Modelling, Elsevier, vol. 28(1-2), pages 741-753, January.
    4. Dimelis, Sophia P. & Papaioannou, Sotiris K., 2011. "ICT growth effects at the industry level: A comparison between the US and the EU," Information Economics and Policy, Elsevier, vol. 23(1), pages 37-50, March.
    5. Lach, Saul & Trajtenberg, Manuel & Shiff, Gil, 2008. "Together but Apart: ICT and Productivity Growth in Israel," CEPR Discussion Papers 6732, C.E.P.R. Discussion Papers.
    6. Indjikian, Rouben & Siegel, Donald S., 2005. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," World Development, Elsevier, vol. 33(5), pages 681-700, May.
    7. Ellen R. McGrattan & Edward C. Prescott, 2005. "Productivity and the post-1990 U.S. economy," Review, Federal Reserve Bank of St. Louis, vol. 87(Jul), pages 537-550.
    8. Welfe, Wladyslaw, 2011. "Long-term macroeconometric models," Economic Modelling, Elsevier, vol. 28(1), pages 741-753.
    9. Andreas Kuhlmann, 2007. "Essays on network industries : privatization, regulation, and productivity measurement," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 26.
    10. van Ark, Bart & Smits, Jan Pieter, 2005. "Technology Regimes and Productivity Growth in Europe and the United States: A Comparative and Historical Perspective," Institute of European Studies, Working Paper Series qt1td1h23k, Institute of European Studies, UC Berkeley.

    More about this item

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:cesifo:v:49:y:2003:i:1:p:27-47.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.