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Seminar

Tech-Driven Secular Stagnation: Cross-Country Evidence

  • Series
    Macro Seminars
  • Speaker(s)
    Yuta Takahashi (Hitotsubashi University, Japan)
  • Field
    Macroeconomics
  • Location
    Tinbergen Institute Amsterdam, room 1.01
    Amsterdam
  • Date and time

    September 22, 2022
    16:00 - 17:15

Abstract
We investigate the role of technology on the global secular stagnation of average labor productivity (ALP). In the last decade, equipment-specific technological progress has been stagnated significantly across developed countries, reflected in the movement of the relative equipment prices. Using a multi-capital growth model, we quantify the effect of the equipment-specific technological stagnation on the ALP growth rates. Our analysis shows that the technological stagnation alone accounts for 71% of the declines in the US ALP and a bulk fraction of other developed countries. We discuss several possible causes behind the global equipment-specific technological stagnation

Keywords: Economic Growth, Secular Stagnation, Technology, Relative Investment Price, EquipmentJEL

Classification: O41, O47

Click here to read full paper.