Jeremy Smith of the Centre for the Study of Living Standards looks at the comparability of productivity growth measures in Canada and the United States, and finds that comparisons of aggregate productivity performance are sensitive to whether trends are assessed at the business sector or total economy level. This sensitivity is a result of substantially higher measured non-business sector productivity growth in Canada relative to the United States, which is partially explained by different measurement techniques in the two countries. There is no definitive answer as to which level is preferable for international productivity growth comparisons.
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Find related papers by JEL classification: E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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