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Productivity and the post-1990 U.S. economy

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  • Ellen R. McGrattan
  • Edward C. Prescott

Abstract

In this paper, we show that ignoring corporate intangible investments gives a distorted picture of the post-1990 U.S. economy. In particular, ignoring intangible investments in the late 1990s leads one to conclude that productivity growth was modest, corporate profits were low, and corporate investment was at moderate levels. In fact, the late 1990s was a boom period for productivity growth, corporate profits, and corporate investment.

Suggested Citation

  • Ellen R. McGrattan & Edward C. Prescott, 2005. "Productivity and the post-1990 U.S. economy," Staff Report 350, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmsr:350
    DOI: 10.21034/sr.350
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    References listed on IDEAS

    as
    1. Dale W Jorgenson & Mun S Ho & Kevin J Stiroh, 2003. "Lessons for Europe from the U.S. Growth Resurgence," CESifo Economic Studies, CESifo Group, vol. 49(1), pages 27-47.
    2. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2003. "Lessons for Canada from the U.S. Growth Resurgence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 3-18, Spring.
    3. Ellen R. McGrattan & Edward C. Prescott, 2005. "Taxes, Regulations, and the Value of U.S. and U.K. Corporations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 767-796.
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    Cited by:

    1. Lukasz A. Drozd & Jaromir B. Nosal, 2012. "Understanding International Prices: Customers as Capital," American Economic Review, American Economic Association, vol. 102(1), pages 364-395, February.
    2. Ferreira, Pedro Cavalcanti & Pereira, Ricardo A. de castro, 2008. "Efeitos de Crescimento e Bem-estar da Lei de Parceria Público-Privada no Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 62(2), October.
    3. Pereira, Ricardo A. de Castro & Ferreira, Pedro Cavalcanti, 2010. "Avaliação dos Impactos Macro-Econômicos e de Bem-Estar da Reforma Tributária no Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 64(2), June.

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