A General Equilibrium Analysis of the Evolution of the Canadian Service Productivity

Pierre Mohnen and Thijs ten Raa

CIRANO Working Papers from CIRANO

Abstract: This paper measures factor productivities (and hence total factor productivity growth) directly on the basis of the fundamentals of the economy (endowments, preferences and technology), without recourse to market prices. The factor productivities are the Lagrange multipliers of a linear program maximizing domestic final demand subject to material balances, endowment constraints, and a balance of payments constraint. The model is applied to the data of the Canadian economy from 1962 to 1991. The commonly held view that services are dragging down the whole economy does not stand the facts. Dans cet article, nous mesurons les productivités factorielles (et dès lors la croissance de la productivité totale des facteurs) à partir des principes essentiels d'une économie (les ressources, les préférences et la technologie) sans avoir recours aux prix du marché. Les productivités factorielles sont les multiplicateurs de Lagrange d'un programme linéaire qui maximise la demande finale domestique sous les contraintes sectorielles, les contraintes de ressources et la contrainte de la balance commerciale. Nous appliquons le modèle aux données de l'économie canadienne de 1962 à 1991. Les données ne concordent pas avec l'hypothèse traditionnelle selon laquelle les services ralentissent la croissance de la productivité.

Keywords: Productivity; linear programming; Canada; Productivité; programmation linéaire; Canada (search for similar items in EconPapers)
JEL-codes: C61 C67 D24 O47 O51 (search for similar items in EconPapers)
Date: 1997-11-01
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https://cirano.qc.ca/files/publications/97s-37.pdf

Related works:
Chapter: A General Equilibrium Analysis of the Evolution of Canadian Service Productivity (2009)
Journal Article: A general equilibrium analysis of the evolution of Canadian service productivity (2000)
Working Paper: A general equilibrium analysis of the evolution of Canadian service productivity (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:97s-37

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