1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Aggregate Growth

What Have We Learned from Microeconomic Evidence?

This paper provides a synthesis of what is known about the determinants of output growth based on studying microeconomic data sets. It starts with a summary of the theoretical explanations which help reconcile heterogeneous performance observed across establishments in the same sector. The related theoretical literature on creative destruction models of growth is also discussed. This is followed by a review of the recent empirical literature on the relationship between microeconomic and macroeconomic productivity growth. The final section discusses the main empirical findings, the caveats of interpretation and the main issues of interpretation underlying the relationship between reallocation and growth ...

English

Keywords: establishment level data, industry productivity, reallocation
JEL: D24: Microeconomics / Production and Organizations / Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity; O12: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Microeconomic Analyses of Economic Development
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