The acceleration of productivity since 1995 has prompted a debate over whether the economy's underlying growth rate … identify variables other than productivity - namely consumption and labor compensation - to help estimate trend productivity … direction. In addition, we find that productivity data alone provide insufficient evidence of regime changes; corroborating …

productivity of capital simultaneously. The model induces a simple relationship between the relative price of investment goods and … capital coexist with older, less productive vintages. A reduction in the cost of investment raises both the quantity and …-five-fold income gaps and six-fold productivity differences between the richest and poorest countries in our sample. …