TFP growth

Publication date: 1 Nov 2017 | Publication type: National Institute Economic Review | Theme: Trade, Investment & Productivity | External authors: Crafts, N, Mills, T C | JEL classification: E32, N12, O47 | Journal: National Institute Economic Review Issue 242 | Publisher: Sage Publications, London
We analyse TFP growth in the US business sector using a basic unobserved component model where trend growth follows a random walk and the noise is a first order autoregression. This is fitted using a Kalman-filter methodology. We  find that trend TFP growth has declined steadily from 1.5 to 1.0 per...