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

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

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.

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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11-624-M2005009&ObjType=46&lang=en&limit=0
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Paper provided by Statistics Canada, Economic Analysis in its series Insights on the Canadian Economy with number 2005009e.

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Date of creation: 13 Jan 2005
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Handle: RePEc:stc:stcp2e:2005009e
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  1. Baldwin, John R. & Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis, number stcb6e, December.
  2. Tanguay, Marc & Baldwin, John R. & Wong, Fanny & Maynard, Jean-Pierre & 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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