Mind the gap: Accounting for Emissions in Productivity Measurement (with Nhung Luu and Bruno De Menna) OECD Blog
This report analyses the econometric methodologies of estimating environmentally-adjusted multi-factor productivity (EAMFP). Therefore, the report uses a five-criteria framework, assessing various methods on their compatibility, robustness, replicability, data requirement and availability, and communicability in cross-country settings. The report suggests that combining Stochastic Factor Analysis with Bayesian estimating is the most promising candidate to improve such estimations.
The Middle East energy shock (Publications Office of the EU)
Based on European Commission simulations, the energy shock triggered by the conflict in the Middle East would ripple across the EU economy. While the impact on GDP growth would be moderate, changes in inflation and employment are expected to be stronger. In 2026, inflation would increase to 3.1% and to 3.5% under a more severe shock scenario. Around 440,000 fewer jobs would be created in the same year, even though employment would still grow overall. The effects would not be evenly shared across sectors and countries. Manufacturing, transport, construction and wholesale and retail trade would be among the most affected sectors, adding to current challenges in some of these sectors. At the same time, Germany, Poland, France and Italy would see the largest reductions in job creation. Due to higher energy and food prices, low-income households would be the most affected, as food and energy are large parts of their consumption basket.Â