IDEAS home Printed from https://ideas.repec.org/a/taf/nzecpp/v39y2005i1p105-108.html
   My bibliography  Save this article

Omitted productivity data: Why haven't economic reforms increased productivity growth in New Zealand?

Author

Listed:
  • Debasis Bandyopadhyay

Abstract

Crucial data on productivity was omitted from my article titled, “Why Haven't Economic Reforms Increased Productivity Growth in New Zealand?. The data consist of GDP per hour and real earnings per hour as two alternative measures of productivity. More importantly, they are crucial to substantiate the premise of the “productivity puzzle” that the article addresses and represent an alternative source of productivity data that the growth economists in New Zealand typically ignore. Instead, they rely on artificially constructed data on total factor productivity (TFP). However, when it comes to the TFP data the art of construction varies widely. Consequently, economists in New Zealand also struggle to gather consensus on how to interpret those data. In the above paper I argue that such a consensus would be impossible to achieve since the interpretation of the TFP data crucially depends on the specific model that one uses. The data on GDP per hour or real earnings per hour, however, raise far less controversy when one attempts to interpret them in wide varieties of models. Moreover, contrary to the widely held optimism among the policymakers regarding post-reform productivity growth, those less controversial data reveal a puzzling drop in the decade long average productivity growth, following the economic reforms of the late 1980s. My paper published in the December 2004 issue of the NZEP provides an explanation of the puzzle in a neoclassical growth theoretic framework. However, because of the unfortunate omission of the crucial productivity data several economists have questioned my premise of any decline in the trend growth rate of productivity. I have responded to those people who contacted me directly regarding those missing data. However, a widespread use of various types of TFP data that do not capture the puzzle of post reform decline in productivity growth calls for the publication of the omitted data. I hope that future research involving this alternative dataset on productivity would benefit the policy makers by providing a less ambiguous picture of the trend in productivity growth in New Zealand.

Suggested Citation

  • Debasis Bandyopadhyay, 2005. "Omitted productivity data: Why haven't economic reforms increased productivity growth in New Zealand?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 39(1), pages 105-108.
  • Handle: RePEc:taf:nzecpp:v:39:y:2005:i:1:p:105-108
    DOI: 10.1080/00779950509558482
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00779950509558482
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:nzecpp:v:39:y:2005:i:1:p:105-108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.tandfonline.com/RNZP20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.