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Can intangible investment explain the UK productivity puzzle? A response and comment

Is the British Economy Supply Constrained II?In this note Bill Martin and Bob Rowthorn of the Centre for Business Research (CBR) respond to the recent critique by Goodridge, Haskel & Wallis of their 2012 study of Britain’s productivity puzzle, Is the British Economy Supply Constrained II? A Renewed Critique of Productivity Pessimism.

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