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Estimating trends in Australia's productivity

Author

Listed:
  • Jyoti Rahman

    (Treasury, Government of Australia)

  • David Stephan

    (Treasury, Government of Australia)

  • Gene Tunny

    (Treasury, Government of Australia)

Abstract

Productivity trends greatly influence the future size of an economy, its ability to meet the challenges of an ageing population, and the setting of both fiscal and monetary policies. This paper estimates trend growth in productivity (GDP per hour worked) in Australia since the late 1970s. Results suggest that trend productivity growth increased markedly during the 1990s. Since that time, however, trend productivity growth has weakened — our estimates suggest that productivity has grown at an annual average trend rate of between 1.5 and 1.8 per cent since the economic slowdown in 2000

Suggested Citation

  • Jyoti Rahman & David Stephan & Gene Tunny, 2009. "Estimating trends in Australia's productivity," Treasury Working Papers 2009-01, The Treasury, Australian Government, revised Feb 2009.
    • Handle: RePEc:tsy:wpaper:wpaper_tsy_wp_2009_1
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    trend productivity growth;

    JEL classification:

    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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