Rethinking the Productivity Lag.

Discusses whether the performance of the euro-zone economy lags as far behind that of the United States as is generally perceived. Observation that euro-zone real gross domestic product has grown at a lower rate than that of the U.S., but that the euro zone's return on capital and total equity returns compare favorably with those in the U.S.; Details of a study by Goldman, Sachs & Co. economist Kevin Daly, which indicates that weaker productivity growth is not the cause of the euro zone's growth gap, but rather the different methods for measuring productivity; Claim by Daly that, measured by hour, productivity in the euro zone grew at a pace close to that in the U.S.; Conclusion that productivity appears to be higher in the U.S. due to population increases and longer work hours.