private sector output Y. The government is fully informed about worker productivity. By examining the welfare properties of … or may not improve economic efficiency …

investment critically depends on its efficiency. Comparing the value of public capital (input) and measures of infrastructure … percent. The economic dividends from closing this efficiency gap are substantial: the most efficient public investors get …

that these appreciations reflect underlying productivity gains in the tradable sector. Using panel data over the period … 1993-98, the results show clear evidence of productivity-driven exchange rate movements in the central and eastern European … expect to experience further productivity-driven real exchange rate appreciations. Evidence from a large cross-section of non …