ABSTRACT
The continued strength and vitality of the United States economy continues to astonish economic forecasters. This chapter employs well-tested and familiar methods to analyse important new information made available by some benchmark revision of the United States National Income and Product Accounts (NIPA). It describes methodology for quantifying the sources of United States economic growth. The chapter presents results for the period 1959–98, and focuses on the 'new economy' era of the late 1990s. It explores the implications of the experience for future growth, comparing the results to some estimates produced by the Congressional Budget Office, the Council of Economic Advisors, and the Office of Management and Budget. The chapter moves beyond the aggregate data and quantifies the productivity growth at the industry level. Using methodology introduced by Domar E., the chapter considers the impact of information technology on aggregate productivity.
