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EU KLEMS Project

EU KLEMS Working Paper Series

No. 9

Corrado, Carol, Paul Lengermann, Eric J. Bartelsman, and J. Joseph Beaulieu, Modeling Aggregate Productivity at a Disaggregate Level: New results for U.S. sectors and industries, (July 2006)


This paper introduces new estimates of aggregate, sectoral, and industry productivity based on a solid framework for how industry and sectoral MFP feed into aggregate MFP. In addition, they are developed using industry data classified according to NAICS from 1987 on. Our sectoral approach confirms that the pick up in U.S. productivity in the late 1990s was not solely concentrated among producers of high-technology equipment and software, and that a surge in innovations in the retail and wholesale trade industries (the distribution sector) also contributed importantly to economic growth. More importantly, our work sheds light on the sources of the continued strong performance of U.S. productivity since 2000. We find that the major sectoral players in the late 1990s pickup were not contributors to the more recent surge in productivity. Rather, striking gains in MFP in the finance and business services sector, a resurgence in MFP growth in the industrial sector, and an end to drops elsewhere more than account for the acceleration in productivity growth in recent years.

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This project is funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, "Policy Support and Anticipating Scientific and Technological Needs".

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Last changed on: 26 July 2006