The Demise of US Dynamism Is Vastly Exaggerated – But Not All Is Well
55 Pages Posted: 1 Feb 2015 Last revised: 27 Aug 2016
Date Written: January 26, 2015
Estimates of total factor productivity are based on assumptions that preclude the decentralized, broad-based innovation that undergirds the dynamism of capitalist economies. Thus the decline in standard measures of productivity – which fly in the face of most everyday experience – is not a cause for alarm. We should however be concerned by the declining numbers of improvised but promising new businesses.
Keywords: innovation, dynamism, entrepreneurship,TFP
JEL Classification: O3, O47, P10, M13
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