Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261011 
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 2019-05
Publisher: 
The University of Utah, Department of Economics, Salt Lake City, UT
Abstract: 
This paper contributes to the literature on secular stagnation by estimating a measure of potential output growth for the post-war US economy derived from a novel model specification that allows for the cyclical interactions between income distribution, represented by the trajectory of the labor share of income, and economic activity, as measured by capacity utilization. The results obtained show that potential output growth exhibits a gradual decline that predates the Great Recession and follows the downward trajectory of the labor share of income, thus suggesting the existence of an important long-run relationship between income distribution and output growth in the USA.
Subjects: 
Potential output growth
capacity utilization
income distribution
labor share
US economy
JEL: 
B50
E12
E25
O40
Document Type: 
Working Paper

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