This Selected Issues paper analyzes the growth prospects of the Greek economy. It is estimated that exceptional factors boosted growth by 1 percentage point per year in recent years and, under current trends and policies, growth is likely to drop to about 3 percent by the end of the decade. The...

Using panel data for a large number of countries, we find that economic contractions are not followed by offsetting fast recoveries. Trend output lost is not regained, on average. Wars, crises, and other negative shocks lead to absolute divergence and lower long-run growth, whereas we find...

This paper investigates the determinants of trend growth and total factor productivity (TFP) growth in the Netherlands, and underscores the importance of boosting structural reforms in the Netherlands. It examines the fiscal incentives and tax deductibility. The paper summarizes recent...

This paper on Selected Issues was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on October 23, 2012. The views expressed in this...

This paper uses the standard one-sector neoclassical growth model to investigate why China's consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly...