Raising eu productivity: lessons from improved micro data
MICROPROD will examine the empirical observation that productivity growth in the developed world has slowed down in the past decade despite both technological innovation continuing as well as greater openness to trade. Our objective is to provide explanations to this puzzle, improving our understanding of productivity and its drivers in general as well as the way that we measure it. In bringing together top micro and macro-economists from highly reputable research institutions in both the academic and policy communities with experts from statistical agencies, MICROPROD will provide the building blocks for next generation economic policy thinking and attempts to answer the following four set of questions: 1) Do we measure productivity correctly? We will gather relevant data and improve the methodologies used to measure productivity. This will be done in a comparative European perspective and with the help of statistical authorities. 2) Do we understand all the mechanisms at work, from intangible investments to integrating into global value chains? We will increase our understanding of how these mechanisms lead to new methods of production, in the way that inputs are combined to produce outputs. 3) What are the combined effects of globalisation and technological change in terms of their distributional impacts? Newly available micro-level data will allow us to provide evidence on the channels through which globalisation and technological change interact with financial and labour market imperfections and impact on the distributions of productivity and income, with an analysis spanning both within and across countries. 4) Is the policy environment conducive to the new productivity environment? Are policies in place designed to support the new mechanisms at work and how can they be adapted in the EU context? We will examine how the general macroeconomic environment can ensure that demand meets supply and that there is adequate financing to promote investment and growth.