Fachin, Stefano and Gavosto, Andrea (2007): The decline in Italian productivity: a study in estimation of Total Factor Productivity with panel cointegration methods. Published in: International Journal of Manpower , Vol. 31, No. 7 (2010): pp. 755-769.
This is the latest version of this item.
Download (377kB) | Preview
The main aim of this paper is to propose a method for obtaining estimates of Total Factor Productivity (TFP) trends (i) free from the restrictive assumptions needed by traditional growth accounting and (ii) requiring only data on inputs and output flows. The approach proposed relies on recent developments in the analysis of non-stationary dependent panels. The ap- plication to the Italian economy for the period 1981-2004, consistently with those obtained through traditional growth accounting methods, supports the view that the decline in Italian labour productivity has been mostly due to a widespread fall in TFP growth. A simple regression points as main causes of this fall the completion of a factor reallocation process among industries and capital types.
|Item Type:||MPRA Paper|
|Institution:||Faculty of Statistics, University of Rome ”La Sapienza”|
|Original Title:||The decline in Italian productivity: a study in estimation of Total Factor Productivity with panel cointegration methods|
|Keywords:||Total Factor Productivity, Productivity Slowdown, Italy, Panel Cointegration.|
|Subjects:||C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models
D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity
|Depositing User:||Stefano Fachin|
|Date Deposited:||26. Nov 2010 04:11|
|Last Modified:||14. Feb 2013 00:52|
Atella, V. and B. Quintieri (2001) "Do R&D expenditures really matter for TFP?" Applied Economics, 33, 1385-1389.
Balistreri, E.J., McDaniel, C.A., Wong, E.V. (2003) "An estimation of US industry-level capital-labor substitution elasticities: support for CobbDouglas" North American Journal of Economics and Finance, vol. 14, 343-356.
Barba Navaretti, G., R. Faini and A. Tucci (2005) "Competitività ed attività internazionali delle imprese Italiane"
Bassanetti, A., M. Iommi, C. Jona-Lasinio and F. Zollino (2004) "La crescita dell'economia italiana negli anni novanta tra ritardo tecnologico e rallentamento della produttività" Temi di discussione n. 539, Banca d'Italia.
Bernanke, B.S. (2005) "Remarks " C. Peter McColough Roundtable Series on International Economics, Council on Foreign Relations University of Arkansas at Little Rock Business Forum
Brandolini, A., and P. Cipollone (2001) "Multifactor Productivity and Labour Quality in Italy, 1981-2000� Banca d'Italia, Temi di discussione n. 422
Bruno, G. and E. Otranto (2003) "Dating the Italian Business Cycle: A Comparison of Procedures " Working Paper, University of Sassari.
Centraal Planbureau "Recent trends in Dutch labor productivity: the role of changes in the composition of employment" Working Paper n. 98 CPB Netherlands Bureau for Economic Policy Analysis, The Hague(NL)
Conference Board (2007) "Global Productivity Trends" http://www.conference-board.org/economics/
Davidson R., and J.G. MacKinnon (2000) "Improving the Reliability of Bootstrap Tests" Queen's University Institute for Economic Research Discussion Paper No. 995.
Daveri, F. (2004) "Why is there a productivity problem in Europe?" CEPS Working Documents n. 205.
Daveri, F. and C. Jona-Lasinio (2005) "Italys Decline: getting the facts right" IGIER Università Bocconi, Working Paper n. 301.
Denison, E.F. (1967) Why Growth Rates Di¤er: Postwar Experience in Nine Western Countries The Brookings Institution,Washington (USA).
Di Iorio, F. and S. Fachin (2008) "A Note on the Estimation of Long-Run Relationships in Dependent Cointegrated Panels" MRPA Working Paper 12053
Dolman, B., L. Lu and J. Rahman (2005) "Understanding productivity trends" Australian Treasury.
Du¤y, J. and C. Papageorgiu (2000) A Cross-Country Empirical Investigation of the Aggregate Production Function Speci�cation Journal of Economic Growth, 5, 87-120.
Fachin, S. (2007) Long-Run Trends in Internal Migrations in Italy: a Study in Panel Cointegration with Dependent Units Journal of Applied Econometrics, 22, 401-428.
Gengenback, C., F.C. Palm, J.P. Urbain (2006) Cointegration Testing in Panels with Common Factors Oxford Bulletin of Economics and Statistics, 768, 684-719.
Harrigan, J. (1999) Estimation of cross-country di¤erences in industry production functions Journal of International Economics, 47, 267-293.
Hsiao, C., Y. Shen and H. Fujiki (2002) Aggregate vs Disaggregate Data Analysis - A Paradox in the Estimation of Money Demand Function of Japan Under the Low Interest Rate Policy Working Paper, UCLA (USA).
Im, K., M.H. Pesaran and Y. Shin (2003) Testing for Unit Roots in Heterogeneous Panels Journal of Econometrics, 115, 53-74.
Islam, N. (1995) Growth Empirics: a Panel Data Approach Quarterly Journal of Economics, 110, 1127-1170.
Istat (2007) "Misure di produttività - Anni 1980-2006" Statistiche in breve, 5 Ottobre 2007.
Kee, H. L. (2004) Estimating Productivity When Primal and Dual TFP Accounting Fail: An Illustration Using Singapores Industries Topics in Economic Analysis & Policy, vol. 4, article 26.
Kmenta, J. (1967) On the Estimation of the C.E.S. Production Function International Economic Review, 2, 180-89.
Mahony, M. and M. Vecchi (2003) Is there an ICT impact on TFP? A heterogeneous dynamic panel approach Working Paper, NIESR.
Marrocu, E., R. Paci and R. Pala (2001) Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach RISEC, 48, 533-558.
Matthews, R.C.O., C.H. Feinstein and J. C. Odling-Smee (1982) British Economic Growth 1856-1973 Oxford University Press, Oxford (UK).
Moon, H.R. (1999) "A note on fully-modi�ed estimation of seemingly unrelated regressions models with integrated regressors" Economics Letters 65, 25-31.
Paparoditis, E. and D.N. Politis (2001) The Continuous-Path Block Bootstrap In Asymptotics in Statistics and Probability. Papers in honor of George Roussas. Madan Puri (ed.). VSP Publications: Zeist (NL).
Park, J. Y., Phillips, P.C.B. (1999) Asymptotics for Non-linear Transformations of Integrated series Econometric Theory, 15, 269-298.
Pedroni, P. (1997) Cross Sectional Dependence in Cointegration Tests of Purchasing Power Parity in Panels Working Paper, Indiana University.
Pesaran, M.H. (2006) A Simple Panel Unit Root Test in the Presence of Cross Section Dependence. DAE Working Paper No. 0346, Cambridge University.
Politis, D.N., Romano, J.P. (1994) The stationary bootstrap, Journal of the American Statistical Association, 89, 1303-1313.
Silverman, B.W. (1986) Density Estimation for Statistics and Data Analysis, Chapman & Hall, London.
Stiroh, K.J. (2002) Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say? The American Economic Review, 92, 1559-1576.
Available Versions of this Item
The decline in Italian productivity: a study in estimation of long-Run trends in Total Factor Productivity with panel cointegration methods. (deposited 08. May 2007)
The decline in Italian productivity: a study in estimation of Total Factor Productivity with panel cointegration methods. (deposited 16. Dec 2008 07:16)
- The decline in Italian productivity: a study in estimation of Total Factor Productivity with panel cointegration methods. (deposited 26. Nov 2010 04:11) [Currently Displayed]
- The decline in Italian productivity: a study in estimation of Total Factor Productivity with panel cointegration methods. (deposited 16. Dec 2008 07:16)