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Growth and economic activity in OECD countries: A long-term perspective

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  • Harm Bandholz
  • Gebhard Flaig
  • Johannes Mayr

Abstract

Measured in terms of the growth rate of the real gross domestic product, Germany has had a particularly poor performance in recent years in an international comparison. Whether this reflects an unfavourable business-cycle development or whether this is a long-term growth weakness is examined in this article using a structural time series model. The model presents the contributions of the business cycle and the long-term GDP growth trend for different OECD countries from 1950 to 2004. The results show that the trend growth rate has decreased in all the analysed countries since the 1950s. The drop was especially strong in Germany, however. This means that the disappointing economic performance in Germany is the result of a low, long-term trend growth rate and points to structural problems that have existed in Germany for a long time.

Suggested Citation

  • Harm Bandholz & Gebhard Flaig & Johannes Mayr, 2005. "Growth and economic activity in OECD countries: A long-term perspective," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(04), pages 28-36, February.
    • Handle: RePEc:ces:ifosdt:v:58:y:2005:i:04:p:28-36
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    References listed on IDEAS

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    Cited by:

    1. Andrzej TABEAU & Geert WOLTJER, 2009. "The Impact of Different Agricultural Labor Market Specifications on Agricultural Employment and Income Development under Different Agricultural Policies," EcoMod2009 21500086, EcoMod.
    2. Doina Radulescu & Michael Stimmelmayr, 2010. "The welfare loss from differential taxation of sectors in Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(2), pages 193-215, April.
    3. Michael STIMMELMAYR, 2008. "What Drives Wage Inequality?," EcoMod2008 23800137, EcoMod.
    4. Radulescu, Doina & Stimmelmayr, Michael, 2010. "The impact of the 2008 German corporate tax reform: A dynamic CGE analysis," Economic Modelling, Elsevier, vol. 27(1), pages 454-467, January.

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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