Is High Productivity Growth Returning?

RePEc Short ID: pcl171
ORCID iD: 0009-0003-7577-4879

Cline, Alexander; Kahn, James A.; Rich, Robert W.

doi:10.26509/frbc-ec-202501

Journal Article

Is High Productivity Growth Returning?

Abstract: Productivity growth has shown a notable pickup since the fourth quarter of 2019, and some commentators cite artificial intelligence and other factors as reasons why technological progress can sustain this faster pace. Motivated by this consideration, we use a model designed to detect trend shifts to examine the behavior of productivity growth in the postwar period. The model allows for shifts between high- and low-growth productivity regimes and estimates the probability of being in one regime or the other. We find that recent data provide tentative support for a higher trend growth rate, with the model estimating about a 40 percent probability that the economy is in a high-growth productivity regime.

Keywords: Productivity growth;

https://doi.org/10.26509/frbc-ec-202501