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The work for this paper was financially supported by the European Commission, DG ECFIN, from a grant under its Fellowship Initiative, “The Future of EMU & Economic Growth Perspectives for Europe”. Earlier versions of this paper were presented at Annual Research Conference on “Economic Growth Perspectives and the Future of the Economic and Monetary Union” on 19-20 November, Brussels; and at the American Economic Association Meetings on 4-6 January in San Diego. A portion of the paper, referring to the supply-side analysis of sources of growth has been published in the International Productivity Monitor, under the title “European Productivity Growth Since 2000 and Future Prospects” authored by Bart van Ark, Vivian Chen and Kirsten Jäger (Number 25, Spring 2013, pp. 65-83). The views in this paper are those of the authors, and do not necessarily coincide with those of the European Commission, The Conference Board or the University of Groningen.
