> >Seth Ackerman wrote:
> >
> >>What do you make of Robert J. Gordon's analysis of the productivity
> >>stats? He finds that all of the recent increase in prod. growth comes
> from
> >>the computer manufacturing sector--which makes up only 1% of the
> economy.
> >>The other 99% of the economy has had SLOWER productivity growth in
> 1996-99
> >>than in any other period since WWII.
> >
> >It's persuasive, but then I'm biased. I've just emailed Gordon to
> >see if he's changed his mind because of the latest, rather high,
> >numbers.
> >
> >Doug
>
> 1%? Meaning that an extra 1% per year aggregate total factor
> productivity growth from computer manufacture implies that computer
> manufacturing total factor productivity is doubling every year?
>
>
Well, Gordon is talking about labor productivity, not TFP.
The 1% refers to the proportion of the economy accounted for by computer manufacturing. Because of huge measured productivity gains in that tiny sector, the average for the whole the economy is inflated. If you leave out the computer sector, prod. growth has declined in the '90's to very pitiful levels.
At least, that's what Gordon says...
Seth