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Has the productivity trend steepened in the 1990s?

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  • Andrew J. Filardo

Abstract

In the 1990s, conventional measures of productivity growth, or the growth in output per worker, have indicated a dramatic rise. If these measures are correct, the economic benefits are clear. In the short run, sustained, faster productivity growth would enable the economy to expand more rapidly without intensifying inflationary pressures. In the long run, sustained, faster productivity growth would boost real incomes and improve the standard of living.> Despite signs that productivity has recently begun to follow a steeper path, some analysts are skeptical. Episodes of faster productivity growth in the past have often reflected cyclical influences rather than fundamental trend shifts. And, the conventional productivity measure, which is based on fixed-weighted productivity data, has recently shown an upward bias.> To address these concerns, Filardo reexamines the conventional, fixed-weighted productivity measure and also uses a new chain- weighted measure to assess productivity growth. He concludes that the productivity trend has not steepened in the 1990s.

Suggested Citation

  • Andrew J. Filardo, 1995. "Has the productivity trend steepened in the 1990s?," Economic Review, Federal Reserve Bank of Kansas City, vol. 80(Q IV), pages 41-59.
  • Handle: RePEc:fip:fedker:y:1995:i:qiv:p:41-59:n:v.80no.4
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    Cited by:

    1. van Norden, Simon, 2011. "Current trends in the analysis of Canadian productivity growth," The North American Journal of Economics and Finance, Elsevier, vol. 22(1), pages 5-25, January.
    2. C. Alan Garner, 2000. "An inflation report for 1999," Economic Review, Federal Reserve Bank of Kansas City, vol. 85(Q I), pages 5-20.
    3. Sharon Kozicki, 1997. "The productivity growth slowdown: diverging trends in the manufacturing and service sectors," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 31-46.
    4. Claudio Borio & William English & Andrew Filardo, 2003. "A tale of two perspectives: old or new challenges for monetary policy?," BIS Papers chapters, in: Bank for International Settlements (ed.), Monetary policy in a changing environment, volume 19, pages 1-59, Bank for International Settlements.

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