The UK: another case of "productivity problems" where they don't exist

Brad Delong shows us another case where the framing makes us think of the UK economy as low productivity instead of just low NGDP. If we look at it in the same way we looked at the US and Mexico here, then we see there is no actual change in productivity and the Solow production function works quite well ...

The exponents of capital and labor are 1.0 and 0.51 respectively -- comparable to 0.9 and 0.51 for Mexico and 0.85 and 0.40 for the US.