Long-run TFP Growth: Lessons from a Multi-country Dataset

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Abstract

This article presents evidence on long-run TFP trends from a multi-country dataset covering the U.S., Euro area, UK, and Japan from 1890 to 2015 (extending the Bergeaud-Cette-Lecat database). It identifies two major productivity waves (electrification and the ICT revolution) and documents the persistent nature of the current TFP slowdown. After adjusting for the quality of factor inputs, most of the slowdown remains unexplained. The article argues that demographic headwinds and secular stagnation in innovation provide the best available explanation for the current slow-growth environment.

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