Sectoral Productivity in the United States: Recent Developments and the Role of IT

27 Pages Posted: 12 Jul 2007 Last revised: 6 May 2014

See all articles by Carol A. Corrado

Carol A. Corrado

The Conference Board; Georgetown University - Center for Business and Public Policy

Paul Lengermann

Board of Governors of the Federal Reserve System

Eric J. Bartelsman

Vrije Universiteit Amsterdam; Tinbergen Institute; IZA Institute of Labor Economics

Joe Beaulieu

Board of Governors of the Federal Reserve - Division of Research and Statistics - Industrial Output Section; National Bureau of Economic Research (NBER)

Date Written: June 1, 2007

Abstract

This paper introduces new estimates of recent productivity developments in the United States, using an appropriate theoretical framework for aggregating industry MFP to sectors and the total economy. 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 service sector, a resurgence in MFP growth in the industrial sector, and an end to drops elsewhere more than account for the aggregate acceleration in productivity in recent years. Further, some evidence is found for a link between IT intensity and the recent productivity acceleration.

Keywords: Economic growth, aggregate productivity, sectoral productivity, industry productivity, information technology, and productivity

JEL Classification: O47, E23

Suggested Citation

Corrado, Carol A. and Lengermann, Paul and Bartelsman, Eric J. and Beaulieu, J. Joseph, Sectoral Productivity in the United States: Recent Developments and the Role of IT (June 1, 2007). FEDS Working Paper No. 2007-24, Available at SSRN: https://ssrn.com/abstract=999601 or http://dx.doi.org/10.2139/ssrn.999601

Carol A. Corrado (Contact Author)

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Paul Lengermann

Board of Governors of the Federal Reserve System ( email )

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Eric J. Bartelsman

Vrije Universiteit Amsterdam ( email )

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Tinbergen Institute ( email )

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IZA Institute of Labor Economics

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J. Joseph Beaulieu

Board of Governors of the Federal Reserve - Division of Research and Statistics - Industrial Output Section

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National Bureau of Economic Research (NBER)

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