Measuring productivity in an age of technological change

Accurate productivity measurement is essential for understanding economic growth, but it faces significant challenges in today’s economy. In recent years, productivity statistics have faced increasing scrutiny, driven by the seeming disconnect between widespread technological advances and lackluster measured economic performance.

On December 16, the Hutchins Center on Fiscal and Monetary Policy hosted a virtual discussion of a new book, “The Measure of Economies: Measuring Productivity in an Age of Technological Change,” published by the University of Chicago Press. Edited by Marshall B. Reinsdorf and Louise Sheiner, this volume examines contemporary challenges in productivity measurement across sectors of the economy that are both growing in importance and hard to measure accurately.

The event featured presentations by Marshall Reinsdorf on overarching themes, Louise Sheiner on the health sector, Nicholas Muller on the environment, David Byrne on the digital economy, and Erica Groshen on nonstandard data sources. These presenters explored advances in measurement practices, highlighted the conceptual and practical challenges statistical agencies face in capturing productivity accurately across today’s complex economy, and offered recommendations for improving official statistics.

Viewers joined the conversation and asked questions in advance by emailing [email protected] or on X @BrookingsEcon using the hashtag #Productivity.