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Potential output growth in several industrialised countries a comparison.
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- Author(s): Cahn, Christophe; Saint-Guilhem, Arthur
- Source:
Empirical Economics; Aug2010, Vol. 39 Issue 1, p139-165, 27p, 8 Charts, 3 Graphs- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: In this paper, we present international comparisons of potential output growth among several economies—Canada, the euro area, France, Germany, Italy, Japan, the Netherlands, the United Kingdom, and the United States—for the period 1991–2004, for which we construct consistent and homogenous capital stock series. The main estimates rely on a structural approach where output of the whole economy is described by a Cobb–Douglas function and Total Factor Productivity (TFP) is estimated allowing for possible breaks in the deterministic trend. The results confirm that over the considered period the potential gross domestic product growth has been faster in the United States than in other studied countries, reflecting a combination of higher labour contribution and faster TFP growth. Overall, this paper might help to shed some light on cross-country differences in economic performance over the recent period. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Empirical Economics is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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