Research summary
Productivity growth is the most important factor determining the standard of living in a country. The higher the productivity, the more real prices decrease and real wages increase. Productivity also allows analysts to forecast economic growth. As Canada Research Chair in Macroeconomics and Productivity, Dr. Diego Restuccia aims to enhance our understanding of the determinants of productivity levels and growth over time in both developed and developing countries.
He and his research team are studying the macroeconomic implications of policies like land reform that alter how resources, such as land, capital and labour, are allocated across firms. They are looking at these in conjunction with other important economic decisions that depend on this allocation, such as the adoption of better technologies. They are also studying how productivity at the country level interacts with major economic trends related to structural transformation, poverty, inequality and climate change.