productivity question, page-7

  1. 3,793 Posts.
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    I remember reading an article somewhere which indicated total factor productivity declining because huge amounts of capital have been put into the resource industry and there is a lag in the increase in output (or many years in some cases)

    Also with high commodity prices it may make economic sense to invest a lot of capital for less return (i.e less volume of production) so the overall measured productivity goes down when prices are high
 
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