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German Productivity - A Reassessment via the New Ifo Productivity Database

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  • Andreas Kuhlmann
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    Abstract

    A detailed analysis of the German productivity development is indispensable for understanding, why Europe is lagging behind the US growth since the mid 1990s. In this paper a new and unique database is used to analyze the sources of German productivity growth since 1970. It is shown that investment in information and communication technology (ICT) played a minor role in the German productivity development. The results include detailed descriptive statistics and projections for output and labor productivity growth for the coming decade. The base-case projection puts overall trend output growth at 1.53 percent per year over the next decade. Average labor productivity will grow at an annual rate of 1.59 percent.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-Ifo_Working_Papers/wp-ifo-2005-2010/IfoWorkingPaper-35.pdf
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    Bibliographic Info

    Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Papers No. 35.

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    Date of creation: 2006
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    Handle: RePEc:ces:ifowps:_35

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    Related research

    Keywords: Growth accounting; productivity analysis; TFP;

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    1. Flaig, Gebhard & Steiner, Viktor, 1993. "Searching for the \"productivity slowdown’: some surprising findings from West German manufacturing," Munich Reprints in Economics, University of Munich, Department of Economics 20364, University of Munich, Department of Economics.
    2. Andreas Kuhlmann, 2006. "What is the X-Factor in the German Electricity Industry?," Ifo Working Paper Series, Ifo Institute for Economic Research at the University of Munich Ifo Working Papers No. 34, Ifo Institute for Economic Research at the University of Munich.
    3. Alessandra Colecchia & Paul Schreyer, 2002. "ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 408-442, April.
    4. Stephen D. Oliner & Daniel E. Sichel, 2002. "Information technology and productivity: where are we now and where are we going?," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 2002-29, Board of Governors of the Federal Reserve System (U.S.).
    5. Francesco Daveri, . "Is Growth an Information Technology Story in Europe Too?," EPRU Working Paper Series, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics 00-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    6. Francesco Daveri, 2004. "Delayed IT Usage: Is it really the drag on Europe's productivity?," Working Papers, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University 267, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    7. van Ark, Bart, 1998. "Productivity," Journal of the Japanese and International Economies, Elsevier, vol. 12(2), pages 171-174, June.
    8. Daveri, Francesco, 2002. "The New Economy in Europe, 1992-2001," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    9. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 14(4), pages 3-22, Fall.
    10. Moses Abramovitz, 1956. "Resource and Output Trends in the United States Since 1870," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number abra56-1.
    11. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, American Economic Association, vol. 91(1), pages 1-32, March.
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