---
canonical_url: "https://csls.ca/ipm-archive/ipm-issue-15/productivity-and-sustainable-consumption-in-oecd-countries-1980-2005/"
title: "Productivity and Sustainable Consumption in OECD Countries: 1980-2005"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T06:54:00+00:00"
date_modified: "2026-07-13T06:54:00+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Fall 2007"
ipm_keyword:
  - "CPI"
  - "current account"
  - "depreciation"
  - "GDP deflator"
  - "living standards"
  - "OECD"
  - "productivity"
  - "sustainable consumption"
  - "United States"
ipm_research_theme:
  - "Well-being and living standards"
ipm_country_focus:
  - "International"
  - "OECD"
  - "United States"
featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp"
status: "publish"
---

# Productivity and Sustainable Consumption in OECD Countries: 1980-2005

Canonical URL: https://csls.ca/ipm-archive/ipm-issue-15/productivity-and-sustainable-consumption-in-oecd-countries-1980-2005/

# Productivity and Sustainable Consumption in OECD Countries: 1980-2005

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-15-3-Baker-Rosnick.pdf)

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Cite this article as:

Baker, Dean, and David Rosnick. 2007. “Productivity and Sustainable Consumption in OECD Countries: 1980-2005.” International Productivity Monitor, No. 15 (Fall 2007): 41–54. https://www.csls.ca/ipm-archive/ipm-issue-15/productivity-and-sustainable-consumption-in-oecd-countries-1980-2005/

## Authors:

-
Dean Baker
Center for Economic and Policy Research (CEPR)

-
David Rosnick
Center for Economic and Policy Research (CEPR)

## IPM Issue 15

Fall 2007 pp. 41–54

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## Abstract

## Résumé

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Productivity growth is the main long-run determinant of living standards. However, there are some distinctions between productivity growth as conventionally measured and the potential of the economy to raise living standards. Specifically, insofar as the share of depreciation in output increases, the rate of productivity growth will exceed the potential growth rate of living standards. The same will be the case if prices for investment goods decline relative to prices for consumption goods. This article adjusts for these factors to develop the concept of “sustainable consumption,” and compares trends in this variable with productivity growth in OECD countries for the 1980-2005 period. E CONOMISTS GENERALLY VIEW productivity

La croissance de la productivité est le principal déterminant à long terme du niveau de vie. Cependant, il existe des distinctions entre la croissance de la productivité telle qu’elle est conventionnellement mesurée et le potentiel de l’économie à améliorer le niveau de vie. Plus précisément, dans la mesure où la part de l’amortissement dans la production augmente, le taux de croissance de la productivité dépassera le taux de croissance potentiel du niveau de vie. Il en sera de même si les prix des biens d’investissement diminuent par rapport aux prix des biens de consommation. Cet article corrige ces facteurs pour élaborer le concept de « consommation durable », et compare les tendances de cette variable avec la croissance de la productivité dans les pays de l’OCDE pour la période 1980-2005.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-15-3-Baker-Rosnick.pdf)
