Fachin, Stefano and Gavosto, Andrea (2007): The decline in Italian productivity: a study in estimation of long-Run trends in Total Factor Productivity with panel cointegration methods.
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The aim of this paper is (i) to propose a method for obtaining estimates of long-run total factor productivity (TFP) trends free from the restrictive assumptions needed by traditional growth accounting, requiring only data on inputs and output flows, and able to deliver estimates of long-run TFP trends; (ii) to apply it to the Italian manufacturing industries over the period 1980-2001, so to shed some light on the severe productivity slowdown of the last decade. The approach proposed relies on recent developments in the analysis of non-stationary, cross-correlated panels. The empirical application, consistently with growth accounting, 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 to the completion of a factor reallocation process among industries and inadequate R&D investment.
|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 long-Run trends in Total Factor Productivity with panel cointegration methods|
|Keywords:||Labour Productvity; 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:||08. May 2007|
|Last Modified:||14. Feb 2013 14:51|
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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)