Estimating trends in Australia's productivity

Jyoti Rahman, David Stephan and Gene Tunny
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Jyoti Rahman: Treasury, Government of Australia
David Stephan: Treasury, Government of Australia
Gene Tunny: Treasury, Government of Australia

No 2009-01, Treasury Working Papers from The Treasury, Australian Government

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

Keywords: trend; productivity; growth (search for similar items in EconPapers)
JEL-codes: E66 O47 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2009-02, Revised 2009-02
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