The industry anatomy of the transatlantic productivity growth slowdown: Similarities outweigh the differences
Since 2005, productivity growth in america and Europe has dipped below 1%. Using new industry-level from the united states and ten EU countries, this column implies that that the industrial composition of the slowdown was similar in Europe and the united states. Falling multifactor productivity growth explains both magnitude and composition of falling productivity growth on both sides of the Atlantic. Decelerating technical change, instead of slowing investment, was the principal driving force in the transatlantic slowdown.