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Potential output growth in several industrialised countries a comparison.

Authors :
Cahn, Christophe
Saint-Guilhem, Arthur
Source :
Empirical Economics; Aug2010, Vol. 39 Issue 1, p139-165, 27p, 8 Charts, 3 Graphs
Publication Year :
2010

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]

Details

Language :
English
ISSN :
03777332
Volume :
39
Issue :
1
Database :
Complementary Index
Journal :
Empirical Economics
Publication Type :
Academic Journal
Accession number :
52057810
Full Text :
https://doi.org/10.1007/s00181-009-0298-2