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Age of productiveness deals a glance at how the low productiveness in Latin the US and the Caribbean is fighting the area from catching up with the built global. The authors glance past the normal macro factors and dig down to the and company point to discover the causes.
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Additional resources for The Age of Productivity: Transforming Economies from the Bottom Up
But the sum of all actions is decisive. An understanding of the tragedy of productivity in the region requires not only an understanding of how individual policies (tax, social, commercial, credit) impact productivity, but how the political economy of a country impacts these policies as well. Productivity as a national objective faces problems of “collective action”: everyone would benefit individually if others paid taxes, were more productive, faced more competition, and worked harder, as long as the burden of responsibility does not lie with them personally.
If factor inputs K and H increase by x percent, output Y would also increase by x percent, as if the same economy “expanded” by x percent). ) describes how the combinations of accumulated factors can be transformed into output and the scaling parameter A converts it into observed output Y. Output per worker Y/L can be similarly decomposed expressing factors of production in per-worker terms (k = K/L and h ϭ H/L) to obtain Y/L ϭ AF(k,h). In these formulations, the parameter A represents the level of aggregate efficiency or TFP: a higher A means that more output is produced with the same factors of production input, either total or per-worker.
Make productivity a central theme of the public discourse, as growth, inflation, or unemployment currently are, and as on occasion even something as diffuse as “competitiveness” can be. Raising productivity THE AGE OF PRODUCTIVITY 17 depends on citizens and opinion leaders demanding adequate policies from the political system. In some cases, setting up national councils can be a valuable tool, provided they are institutionalized by law and endure over time. This requires an institutional framework that separates strategy from policy design and evaluation, has great credibility, and is protected from particular rent-seeking conducts.