Revisiting Productivity Dynamics in Europe: A New Measure of Utilization-Adjusted TFP Growth

2025/01/16 by Diego Comín, Javier Quintana, Tom Schmitz +1 · 3 voices · 1 citation
Economics, Econometrics and Finance · #Economic Growth and Productivity #Firm Innovation and Growth #Global trade and economics

paper · doi:10.1093/jeea/jvaf003

openalex publication_date 2025/01/16 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/23

Abstract

Abstract We compute new estimates of total factor productivity (TFP) growth in the five largest European economies. Our estimates account for positive profits and use firm surveys to proxy for unobserved changes in factor utilization. These novelties have a major impact: Our estimated TFP growth series are substantially less volatile and less cyclical than the ones obtained with standard methods. Based on our approach, we provide annual industry-level and aggregate TFP series, as well as the first estimates of profit and utilization-adjusted quarterly TFP growth in Europe.

Citations

• Technical Change and the Aggregate Production Function
• The Rise of Market Power and the Macroeconomic Implications*
• Declining Labor and Capital Shares

Cited by

• Output divergence in fixed exchange rate regimes

Discussions

• Forthcoming article by Diego Comin, Javier Quintana, Tom Schmitz and Antonella Trigari "Revisiting Productivity Dynamics in Europe: A New Measure of Utilization-Adjusted TFP Growth @eeanews.bsky.socia [bsky, 6 points, 0 comments]
• 🚨New data on European productivity! EUROPROD-UA contains TFP growth rates for the Euro Area and its five largest economies, adjusted for changes in factor utilization and non-zero profits #bdeResearc [bsky, 2 points, 1 comments]
• Further details on the methodology are available in a recent publication by Comin, Quintana, Schmitz and Trigari (2025) in the Journal of the European Economic Association academic.oup.com/jeea/advanc [bsky, 1 points, 0 comments]

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