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The Output Gap Between Canada and the United States: The Role of Productivity (1994-2002)

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  • Baldwin, John R. Maynard, Jean-Pierre Wong, Fanny

Abstract

The difference in the output gap (GDP per capita) between Canada and the United States is broken down into two components - differences in productivity (GDP per hour worked) and differences in effort (hours worked per capita) for the period 1994 to 2002. The paper shows that, on average, the majority of the output gap is accounted for by differences in hours worked rather than differences in productivity. Since 1994, the output gap has narrowed slightly, primarily because of an increase in hours worked in Canada relative to the United States.

Suggested Citation

  • Baldwin, John R. Maynard, Jean-Pierre Wong, Fanny, 2005. "The Output Gap Between Canada and the United States: The Role of Productivity (1994-2002)," Insights on the Canadian Economy 2005009e, Statistics Canada, Economic Analysis Division.
    • Handle: RePEc:stc:stcp2e:2005009e
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    File URL: http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=11-624-M2005009&lang=eng
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    References listed on IDEAS

    as
    1. Baldwin, John R. Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis Division, number stcb6e.
    2. Baldwin, John R. Maynard, Jean-Pierre Tanguay, Marc Wong, Fanny Yan, Beiling, 2005. "A Comparison of Canadian and U.S. Productivity Levels: An Exploration of Measurement Issues," Economic Analysis (EA) Research Paper Series 2005028e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Maynard, Jean-Pierre, 2007. "A Comparison of GDP Per Capita in Canada and the United States from 1994 to 2005," Insights on the Canadian Economy 2007016e, Statistics Canada, Economic Analysis Division.
    2. Jean-Philippe Cotis, 2006. "Benchmarking Canada's Economic Performance," International Productivity Monitor, Centre for the Study of Living Standards, vol. 13, pages 3-20, Fall.
    3. Paul Conway & Giuseppe Nicoletti, 2007. "Product Market Regulation and Productivity Convergence: OECD Evidence and Implications for Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 15, pages 3-24, Fall.

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    Keywords

    Economic accounts; Productivity accounts;

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