Saturday, December 29, 2007

Boosting French Growth

"The Levers of French Growth," a new report for the Conseil d'Analyse Économique by Philippe Aghion, Gilbert Cette, Élie Cohen, and Jean Pisani-Ferry, reviews the reasons why France has lagged its Scandinvian and British neighbors in economic growth over the period 2000-2006. If you're planning to stay home on New Year's Eve, this 230-page report might help you pass the time. If not, you can skip to the summary on p. 211, which suggests a long list of remedies that will sound familiar to anyone who has been reading this blog since the elections. The report can be read as a justification for some of the government's economic policies, although one major recommendation--an increase of investment in higher education of 1/3 to 1/2 pct. of GDP--together with reorganization of R&D support will require further attention.