They show that a correct reworking of the latest official data on changes in labour composition overturns Goodridge, Haskel & Wallis’s main criticism. They also question the strength of the empirical evidence offered by Goodridge, Haskel & Wallis in support of their alternative explanations of the productivity puzzle.
Follow the debate
Read the original study, Is the British Economy Supply Constrained II? A Renewed Critique of Productivity Pessimism, by Martin & Rowthorn, May 2012
Read the critique “Can intangible investment explain the UK productivity puzzle?” by Goodridge, Haskel & Wallis, National Economic Review, April 2013
Read the response and comment by Martin & Rowthorn, July 2013