India: Productivity and Sustainable Consumption in OECD Countries: 1980-2005

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India: Productivity and Sustainable Consumption in OECD Countries: 1980-2005

Author Info

Dean Baker
David Rosnick

Abstract

Productivity growth is the main long-run determinant of living standards. However, there are some distinctions between productivity growth as conventionally measured and the potential of the economy to raise living standards. Specifically, insofar as the share of depreciation in output increases, the rate of productivity growth will exceed the potential growth rate of living standards. The same will be the case if prices for investment goods decline relative to prices for consumption goods. This article adjusts for these factors to develop the concept of “sustainable consumption,” and compares trends in this variable with productivity growth in OECD countries for the 1980-2005 period.

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Publisher Info
Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 15 (2007)
Issue (Month): (Fall)
Pages: 41-54
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Handle: RePEc:sls:ipmsls:v:15:y:2007:3

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Find related papers by JEL classification:
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Roland Spant, 2003. "Why Net Domestic Product Should Replace Gross Domestic Product as a Measure of Economic Growth," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 39-43, Fall. [Downloadable!]
Dean Baker, 2007. "The Productivity to Paycheck Gap: What the Data Show," CEPR Reports and Issue Briefs 2007-11, Center for Economic and Policy Research (CEPR). [Downloadable!]

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This page was last updated on 2008-10-9.

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