Cato Economic Growth Conference: Live from the F.A. von Hayek Auditorium
Over at Equitable Growth: Cato Institute Economic Growth Conference: Panel I

Morning Must-Read: David Beckworth: Are We Mismeasuring Productivity Growth?

David Beckworth: Are We Mismeasuring Productivity Growth?: "Noah Smith... observed that the Fernald TFP data...

...can be decomposed into TFP in investment production and TFP in consumption production. TFP in investment looks better than the overall.... TFP in consumption... has basically flatlined since the early 1970s and is what is driving the Great Stagnation.... The Great Flattening does not seem reasonable. Has productivity growth in consumption really been flat since the early 1970s?... This suggests there are big measurement problems in consumption production. And I suspect they can be traced to the service sector..."