The Impact of Subsidies on Measuring Productivity and the Sources of Economic Growth

Jon Samuels, Corby Garner and Justin Harper

BEA Papers from Bureau of Economic Analysis

Abstract: Taxes and subsidies drive a wedge between prices received and paid by producers and those paid by purchasers. Motivated by the large economic subsidies that were part of the policy response to the COVID-19 pandemic, this paper introduces a new treatment for taxes and subsidies into the BEA-BLS Integrated industry-level production account. Over shorter time periods, and for particular individual industries, these adjustments affect measured productivity growth, but have a minimal impact at the aggregate. Nevertheless, for shorter time periods, and for industries that receive large subsidies, accounting for the effect of taxes and subsidies has a noticeable impact on the measured sources of growth.

JEL-codes: D24 E01 H20 (search for similar items in EconPapers)
Date: 2024-06
New Economics Papers: this item is included in nep-eff and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.bea.gov/system/files/papers/BEA-WP2024-3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bea:papers:0127

Access Statistics for this paper

More papers in BEA Papers from Bureau of Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Andrea Batch ().