9 Maddison (2001) shows growth per capita in UK to be 2.1 per cent over the period 1950 to 1998. Surveying the evidence, the Treasury paper Trend Growth: Recent Developments and Prospects also suggests a figure of 2.1 per cent for output growth to be reasonable.5 The annual rate of g is therefore put at 2 per cent per year.
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5 This estimate removes the impact of net migration. The paper is available on the HM Treasury website (http://www.hm-treasury.gov.uk).