In this deep dive, you will analyze the differences in productivity and economic growth between Europe and the USA. The data, summarized by this picture from the Financial Times, indicates that productivity has been growing at a much faster pace in the USA than in Europe.
Your task is to explore the potential policy, demographic, or other factors behind this disparity.
In particular, using the guidance of the economic models and theories you have learned in this course, you will try to identify one or two factors behind the disparity in productivity growth rates between the USA and Europe. You will then explain why you believe this factor can explain the differences we observe, using economic logic to make your argument.
The assignment consists of three main sections: an introduction summarizing findings and sources, a main body exploring in depth the one or two key factors contributing to the productivity gap, and a conclusion reiterating findings and highlighting implications for economic policy.
Introduction: Provide a brief overview of your findings/statement. Outline the sources of analysis and data you will use to support your statement. This section should be between 300 and 500 words.
Main Body: Delve into a detailed analysis of your inquiry. Explore the reasons why you pick the factor you thought was most relevant (it could be a policy difference, demographic trends, labor market dynamics, technological advancements, and other factors that may contribute to the productivity gap). Make sure to be convincing! Use economic logic, and data to support it. This section should be between 750 and 1250 words.
Conclusion: Summarize your findings and conclusions, emphasizing the primary factors driving the productivity gap between Europe and the USA. Reflect on the implications of these differences for future economic policy and international competitiveness. Reiterate your stance on the key drivers of productivity growth in each region and offer insights into potential strategies for addressing the productivity challenge.
This section should be less than 300 words.
