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The Mismeasurement of Europe's Productivity


The Nobel laureate economist Paul Krugman uses the wrong metric - purchasing power parity - to make the case that Europe is not lagging far behind the US in terms of productivity. The right metric shows that the gap is growing.


Philippe Aghion, Antonin Bergeaud and Luis Garicano

29 May 2026


Project Syndicate


https://www.project-syndicate.org/onpoint/paul-krugman-is-wrong-about-us-europe-productivity-gap-by-philippe-aghion-et-al-2026-05

This work is published under POID and the CEP's Growth programme.