Template-type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Title: Editor’s Overview Abstract: This 13th issue of the International Productivity Monitor produced by the Centre for the Study of Living Standards contains five articles. In contrast to the last issue on the Boskin Commission Report after a decade, this issue has a strong Canadian flavour. Topics covered are the benchmarking of Canadian economic performance, policies for improving productivity growth in Canada, Canada-U.S. differences in hours worked, the impact of terms of trade on Canada, and the measurement of government output and productivity. Classification-JEL: C00, F19, F41, H60, O11 Keywords: Benchmark, Canadian Economy, Productivity, Canada-U.S., Hours worked, Trade, Measurement, Government output. Journal: International Productivity Monitor Pages: 1-2 Volume: 13 Year: 2006 Month: Fall File-URL: http://www.csls.ca/ipm/13/IPM-13-editor overview-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/13/IPM-13-mot du redacteur-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:13:y:2006:0 Template-type: ReDIF-Article 1.0 Author-Name: Jean-Philippe Cotis Title: Benchmarking Canada's Economic Performance Abstract: While Canada's economic record over the past decade or so is enviable, GDP per capita remains distinctly below US levels, reflecting a sizeable productivity gap. Among the impediments to faster growth are the taxation of capital and restrictive regulations in certain sectors. Canada's experience raises the general question of why it is difficult to implement reforms, even when the barriers to improved performance are known. Peer pressure based on sophisticated benchmarking, as takes place under OECD auspices in the context of the multilateral Going for Growth surveillance, helps overcome some of the political economy hurdles standing in the way of reform. A related issue is whether GDP is a reasonable proxy for well-being, and hence an appropriate metric for policy purposes. It turns out that it is, notwithstanding its shortcomings and even if other indicators need to be considered as well alongside GDP. Classification-JEL: E01, E61, E62, P52, O40, O47 Keywords: Canada's economic performance, GDP per capita, Productivity gap, Proxy, Taxation of capital, Restrictive regulations. Journal: International Productivity Monitor Pages: 3-20 Volume: 13 Year: 2006 Month: Fall File-URL: http://www.csls.ca/ipm/13/IPM-13-cotis-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/13/IPM-13-cotis-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:13:y:2006:1 Template-type: ReDIF-Article 1.0 Author-Name: Don Drummond Title: The Economists' Manifesto for Curing Ailing Canadian Productivity Abstract: This article summarizes the elements that are in common in most economists' recommendations on how to raise productivity in Canada. Some of the recommendations require governments to tackle issues such as removing interprovincial trade barriers and reforming employment insurance where firmly established interests would be rocked. The private sector would have to shed some complacency. But the pay-offs would be enormous. Economists have come together impressively on an action plan to raise productivity, now they need to hone their communications skills to convince the country to swallow the prescribed medicine. Classification-JEL: O11, O24, O25, O40, O43, H00, I21 Keywords: Productivity, Policy recommendations, Trade barriers, Employment Insurance, Private sector, Communications. Journal: International Productivity Monitor Pages: 21-26 Volume: 13 Year: 2006 Month: Fall File-URL: http://www.csls.ca/ipm/13/IPM-13-drummond-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/13/IPM-13-drummond-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:13:y:2006:2 Template-type: ReDIF-Article 1.0 Author-Name: Alberto Isgut Author-Name: Lance Bialas Author-Name: James Milway Title: Explaining Canada-U.S. Differences in Annual Hours Worked Abstract: Employed Canadians worked an average of 157 hours less per year than employed Americans during 1997-2004. This one month less per year spent on the job is a significant contributor to the difference in GDP per capita between Canada and the United States. This article provides a detailed examination of the factors underlying the Canada-United States gap in annual hours worked. We find that over 40 per cent of the gap can be explained by a higher propensity of Canadians to take full-weeks off, mainly for vacations. Furthermore, over a quarter of the intensity gap is explained by a higher incidence of part-time work in Canada, and much of this reflects the higher proportion of Canada's part-time workers who have difficulties finding full-time work. We find that Canada's higher union coverage rates and labour standards are more important factors to explain the hours gap than differences in marginal tax rates. Canada's less robust economy is also relevant. Finally, we find that highincome Canadians take considerably more weeks of vacation per year than their American counterparts and are less likely to work long work weeks. Classification-JEL: C80, O11, O15, O40, O47, D10 Keywords: GDP per capita, Hours worked, Productivity gap, Part-time workers, Labour standards, Marginal tax rates Journal: International Productivity Monitor Pages: 27-45 Volume: 13 Year: 2006 Month: Fall File-URL: http://www.csls.ca/ipm/13/IPM-13-isgut et al-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/13/IPM-13-isgut et al-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:13:y:2006:3 Template-type: ReDIF-Article 1.0 Author-Name: Ulrich Kohli Title: Real GDP, Real GDI and Trading Gains: Canada, 1981-2005 Abstract: Real gross domestic product (GDP) fails to account for the trading gains and losses that result from changes in the terms of trade and in the real exchange rate (the price of tradables relative to the price of nontradables). Canada has enjoyed vast improvements in its terms of trade over recent years and there is a growing suspicion that real GDP has done an inadequate job at reflecting the resulting increases in real value added and real gross domestic income (GDI). Superlative measures of the terms of trade and real exchange rate effects confirm this view, with the trading gains adding up to 4.8 per cent of GDP between 2002 and 2005. Classification-JEL: C80, O11, O15, O40, O47, F14, F40, E30, E23 Keywords: Real GDP, Trade, Real exchange rate, Real GDI, Measurement on GDP Pages: 46-56 Volume: 13 Year: 2006 Month: Fall File-URL: http://www.csls.ca/ipm/13/IPM-13-kholi-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/13/IPM-13-kholi-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:13:y:2006:4 Template-type: ReDIF-Article 1.0 Author-Name: Aled ab Iorwerth Title: How to Measure Government Productivity: A Review Article on 'Measurement of Government Output and Productivity for the National Accounts' (The Atkinson Report) Abstract: The Atkinson Report examined measurement of public services' output and productivity. Traditionally, only inputs to the government sector were reflected in the National Accounts. This treatment imposed zero productivity growth for the government sector. From the late 1990s, the United Kingdom — in accordance with the recommendations of international standards — had started to introduce direct measures of government output. Rather than count the number of teachers, a measure of the education sector's output would include pupil attendance in schools, for example. Introducing these measures of government output had cast light on what the government sector produces and its productivity in doing so. Sir Tony Atkinson reviewed these methods and recommended improvements. The objectives of introducing direct measures of government output and the principles he advocated in undertaking this task are summarized in this review. As well as ensuring an important part of the economy is reflected in the National Accounts, introducing direct measures of government output into the National Accounts would allow policymakers to make more informed judgments and give greater information on the overall performance of government services. Classification-JEL: C00, H11, H20, H60, I11, I21, O11 Keywords: National Accounts, the Atkinson Report, Public service, Output measurement, Productivity, Direct measures of government output Journal: International Productivity Monitor Pages: 57-74 Volume: 13 Year: 2006 Month: Fall File-URL: http://www.csls.ca/ipm/13/IPM-13-Iorwerth-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/13/IPM-13-iowerth-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:13:y:2006:5