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The decline in German productivity: Research into causes at the industry branch level

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  • Theo Eicher
  • Thomas Strobel

Abstract

Since 2005 the Ifo Institute has examined the determinants of German productivity weakness. A database has been compiled for this purpose. It contains broadly diversified information on investments and capital services available at the industry branch level, whereby a subdivision in IT-producing, IT-using and non-IT-intensive branches is possible. The information on software investments is based, unlike other databases, not on estimates but on studies and surveys by the Ifo Institute. The database also supplies industry-sector-specific time series on gross value creation, on quality-adjusted man-hours and on technological change. The information in the Ifo productivity database shows that a stronger growth in IT capital intensity after 1995 had positive effects on productivity growth in Germany but was nevertheless too weak to absorb the growth declines in non-IT-capital intensity.

Suggested Citation

  • Theo Eicher & Thomas Strobel, 2008. "The decline in German productivity: Research into causes at the industry branch level," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(15), pages 33-40, August.
    • Handle: RePEc:ces:ifosdt:v:61:y:2008:i:15:p:33-40
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    File URL: https://www.ifo.de/DocDL/ifosd_2008_15_3.pdf
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    References listed on IDEAS

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    1. Robert Inklaar & Mary O'Mahony & Marcel Timmer, 2005. "ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY‐LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 505-536, December.
    2. Ernst R. Berndt & Charles R. Hulten, 2007. "Introduction to "Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches"," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 1-14, National Bureau of Economic Research, Inc.
    3. Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December.
    4. Michael J. Geske & Valerie A. Ramey & Matthew D. Shapiro, 2007. "Why Do Computers Depreciate?," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 121-150, National Bureau of Economic Research, Inc.
    5. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
    6. Ernst R. Berndt & Charles R. Hulten, 2007. "Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches," NBER Books, National Bureau of Economic Research, Inc, number bern07-1, July.
    7. Theo Eicher & Oliver Roehn, 2007. "Sources of the German Productivity Demise – Tracing the Effects of Industry-Level ICT Investment," CESifo Working Paper Series 1896, CESifo.
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    Cited by:

    1. Marta Gotz, 2010. "Problems of Economic Development in Reunified Germany. Retrospective Approach," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 4(2), June.

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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