The Slowdown in Productivity Growth: Is It Happening? Why Is It Happening? Why Does It Matter?
Grant Year: 2016
Martin Baily, Louise Sheiner, and David Wessel will lead an effort to examine why the productivity growth rate of the U.S. economy appears to be slowing and consider whether policy reforms could reverse that trend. They will commission a series of analyses to explore hypotheses that have been offered to explain the productivity growth slowdown, including the increased size of sectors of the economy, such as health care, that appear to be slow to adopt productivity-enhancing innovations and the decline in the rate of new business formation. The project’s findings will appear in a series of papers and a single-author report.
Brookings Institution Domestic Public Policy