But we do know that productivity ultimately depends on many factors, including our workforce’s knowledge and skills along with the quantity and quality of the capital equipment, technology, and infrastructure that they have to work with. As a general principle, the American people would be well served by the active pursuit of effective policies to support longer-run growth in productivity.
In tandem with these infrastructural developments, algorithmic trading volumes seem to be increasing steadily in Japanese equity markets. Although no official statistics are available, 20 to 30 percent of all orders received by the Tokyo Stock Exchange are placed at colocation sites, 5 which are specially designed for automatic, high-speed trading.