Scribd Logo
Upload

Welcome to Scribd!

  • Crafts Overview

    Uploaded by

    4i2p8w3ja
    1 views1 page
    The document discusses economic growth in Europe from 1950-1973, known as the Golden Age. Britain experienced its fastest growth ever during this period but remained less productive than other countries. Slow productivity growth in Britain was due to weak total factor productivity growth. Various supply-side policies and a lack of effective competition policy contributed to Britain's relative economic decline compared to countries like France and West Germany. Liberalization efforts in the 1970s and reforms in the 1980s-1990s improved Britain's productivity and competitiveness through increased competition, deregulation, and other supply-side reforms. While competition played a key role, the document notes that education, taxation, and macroeconomic policies also influenced Britain's economic performance over the 20th century.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses economic growth in Europe from 1950-1973, known as the Golden Age. Britain experienced its fastest growth ever during this period but remained less productive than other countries. Slow productivity growth in Britain was due to weak total factor productivity growth. Various supply-side policies and a lack of effective competition policy contributed to Britain's relative economic decline compared to countries like France and West Germany. Liberalization efforts in the 1970s and reforms in the 1980s-1990s improved Britain's productivity and competitiveness through increased competition, deregulation, and other supply-side reforms. While competition played a key role, the document notes that education, taxation, and macroeconomic policies also influenced Britain's economic performance over the 20th century.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    1 views1 page

    Crafts Overview

    Uploaded by

    4i2p8w3ja
    The document discusses economic growth in Europe from 1950-1973, known as the Golden Age. Britain experienced its fastest growth ever during this period but remained less productive than other countries. Slow productivity growth in Britain was due to weak total factor productivity growth. Various supply-side policies and a lack of effective competition policy contributed to Britain's relative economic decline compared to countries like France and West Germany. Liberalization efforts in the 1970s and reforms in the 1980s-1990s improved Britain's productivity and competitiveness through increased competition, deregulation, and other supply-side reforms. While competition played a key role, the document notes that education, taxation, and macroeconomic policies also influenced Britain's economic performance over the 20th century.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Golden Age:

    1950-1973 known as the golden age of Economic Growth in Europe. This is due to catch up of the productivity
    gap left by thew US established in 1950.

    What reasons could there be for a productivity gap to be produced by the US being more productive?

    1. BETTER INCENTIVE STRUCTURE


    2. IMPROVED TECHNOLOGICAL CONGRUENCE

    (ABRAMOVITS AND DAVID (1996))

    Britain had fastest growth ever but was still behind due to economic decline that proceeded it. (Table 5)

    Overtaken by 7 other countries in GDP per person and 9 others in terms of labour productivity.

    Slow labour productivity growth is due to weak TFP growth. Early Elizabethan Britain failed and fell behind
    France and West Germany (Show Table 6).

    Discuss reasons for this:

    Supply side policy continued along the trajectory established in the 1930s. Protectionist Policies were kept in
    place (SHOW TABLE 7, DISCUSS TARRIF PRICING) and there was neglectful Competition policy. (No real
    penalties. Discuss no mergers being prevented, the process being politicized. A few public interest trials
    occurred but no penalties). Therefore, weak competition in product markets.

    1970s to Early 21st Century:

    Understandably, once growth slowed down in the 70s, the UK was affected less so. The UK had slightly higher
    GDP than France and West Germany. This is due to GREATER EMPLOYMENT and LONGER HOURS WORKED as
    productivity was still lower than France and West Germany.

    Crafts finds it important to look at the post-golden age to test the interpretation of the previously discussed
    era. TFP improved through reductions in inefficient factors of production and not through stronger research
    and development produced through competition.

    Liberalization was seen to be becoming more prevalent through entry into the European Economic Community
    in 1973 and GATT (General Agreement on Taxes and Tariffs) negotiations. (NOTE FIGURES ON PAGE 25 FOR
    THIS)

    1980s and 90s were a period of de-regulation. PMR show UK becoming more liberalised. Introduction of
    criminal penalties for running cartels.

    Also noted that in the later 20th century, productive performance is improved through greater pressure for
    management to perform and firm-worker bargains which increased effort and improved working practices.
    Total factor productivity (TFP) found to be inversely related to Product market regulation. (PMR) (SHOW TABLE
    9)

    Same period saw trade unions membership and bargaining power falling. Notes that high unemployment and
    anti-union legislation also play a part but competition is also important.

    Adoption of ICT also improved productivity and management practices.

    Paper’s Conclusions:

    Paper concludes that economists agree that strengthening competition is good for productivity performance.
    The paper explicitly focused on the 20th century as opposed to the late-Victorian economy new economic
    historians previously examined. Notes that competition is not the whole story in terms of British economic
    decline. Education, taxation, macroeconomic policy can be very important in determining this.

    You might also like