Structural Change within the Service Sector and the Future of Baumol's Disease
WIFO Research Seminar, Österreichisches Institut für Wirtschaftsforschung, Wien, 21.09.2022 12:30
Comment: Thomas Url – You will receive the participation link after your registration via e-mail to firstname.lastname@example.org.
Veranstalter: Österreichisches Institut für Wirtschaftsforschung
Online seit: 06.09.2022 0:00
Structural change contributed to the past slowdown of US productivity growth by reallocating production to stagnant services
sectors with low productivity growth. We ask what the future effect of structural change on productivity growth will be. To
provide an answer, we study structural change among goods and different services. We find that there are substitutes for stagnant
services, which prevents them from taking over the economy in the long run. Our calibrated model implies that in the future
structural change will reduce aggregate productivity growth in the USA only by about half as much as in the past.