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Productivity measurement issues in services industries: "Baumol's disease" has been cured

  • Jack E. Triplett
  • Barry P. Bosworth

This paper was presented at the conference "Economic Statistics: New Needs for the Twenty-First Century," cosponsored by the Federal Reserve Bank of New York, the Conference on Research in Income and Wealth, and the National Association for Business Economics, July 11, 2002. The authors document that labor productivity growth in the services industries after 1995 was a broad acceleration, not just confined to one or two industries, as has sometimes been supposed. They also examine the sources of labor productivity growth: a great expansion in services industry multifactor productivity (MFP) after 1995, information technology (IT) investment, and purchased intermediate inputs.

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Article provided by Federal Reserve Bank of New York in its journal Economic Policy Review.

Volume (Year): (2003)
Issue (Month): Sep ()
Pages: 23-33

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Handle: RePEc:fip:fednep:y:2003:i:sep:p:23-33:n:v.9no.3
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  1. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
  2. Martin Neil Baily & Robert J. Gordon, 1988. "The Productivity Slowdown, Measurement Issues, and the Explosion of Computer Power," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 347-432.
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