Productivity Growth and the New Economy

Productivity Growth and the New Economy

Productivity Growth and the New Economy By

Equity Prices, Productivity Growth, and ‘the New Economy’

The increase in equity prices over the 1990s has to a large degree been attributed to permanently higher productivity growth that is derived from the ‘new economy’ and related research and development (R&D) expenditures. This paper establishes a rational expectations model of technology innovations and equity prices, which shows that under plausible assumptions, productivity advances can only h...

Interpreting Productivity Growth in the New Economy: Some Agnostic Notes

The growth rate of total factor productivity seems to have increased recently, at least in the United States. Higher US productivity growth may justify higher stock market valuations than in the past and thus herald an emerging New Economy. However, the size of the estimated growth rate of total factor productivity depends on an assumption about the factor-augmenting properties of technological...

The Contribution of Agriculture to Economic and Productivity Growth of Iranian Economy

The historical experience of many developing countries show that many developing world has not paid enough attention and is not giving serious thought to its agricultural sector. In fact, nearly all the countries that have “undervalued” their agricultural sectors not only failed to grow rapidly, but they all encountered domestic food shortages, balance of payment crisis and some sort of politic...