Comparing investment patterns in Europe and the United States, Döttling, Gutierrez, and Phillippon (2017) conclude that weak investment in the US is mainly the result of structural features of the economy and of increased concentration. In Europe, weak investment is more transitory, which is consistent with previous findings linking weak investment to debt overhang.
Heterogeneity in terms of GDP growth and output gaps in the euro area which initially increased during the crisis, has been declining (Graph 10). 4 Convergence of GDP growth implies that there is little convergence of income levels in Europe In many cases, high growth rates have not been accompanied by improvements in productivity (Graph 11).