Treasury Policy Perspectives

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Treasury Policy Perspectives

• Graeme DavisMacroeconomic Policy Division

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Treasurys 3 Ps Framework
GDP per capita
Proportion of population of working age
Population
3
Comparisons of Australia with the United States
Australian GDP per capita as a per cent of the
United States
GDP per capita of US
Source Groningen Growth and Development Centre
and The Conference Board (2004)
4
Comparisons of Australia with the United States
Australian hours worked per capita as a per cent
of the United States
GDP per capita of US
Population and Participation of US
Source Groningen Growth and Development Centre
and The Conference Board (2004)
5
Comparisons of Australia with the United States
Australian GDP per hour worked as a per cent of
the United States
GDP per capita of US
Population and Participation of US
Productivity of US
Source Groningen Growth and Development Centre
and The Conference Board (2004)
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Australian industry productivity levels relative
to the United States (1985)
Index (US100)
Index (US100)
200
200
100
100
0
0
Employment
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Australian industry productivity levels relative
to the United States (2001)
Index (US100)
Index (US100)
200
200
100
100
0
0
Employment
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Context affecting Australia

• Internal geography
• Location
• Population
• History and historical linkages
• Natural endowments

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Distance to World GDP
Australia
United Kingdom
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Summary

• Current questions
• Does Australias context limit our ability to
  close the productivity gap?
• To what extent can policy be used to close the
  productivity gap?