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How important is innovation? A Bayesian factor-augmented productivity model on panel data

Author

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  • Georges Bresson

    (TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique, ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - UP2 - Université Panthéon-Assas - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Michel Etienne

    (UP11 - Université Paris-Sud - Paris 11)

  • Pierre Mohnen

    (Maastricht University [Maastricht])

Abstract

This paper proposes a Bayesian approach to estimate a factor augmented productivity equation. We exploit the panel dimension of our data and distinguish individual-specific and time-specific factors. On the basis of 14 technology and infrastructure indicators from 37 countries over a 10-year period (1998 to 2007), we construct summary indicators of these two components and estimate their e ect on the growth and the international diff erences in GDP per capita.

Suggested Citation

  • Georges Bresson & Jean-Michel Etienne & Pierre Mohnen, 2011. "How important is innovation? A Bayesian factor-augmented productivity model on panel data," Working Papers halshs-00812155, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00812155
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00812155
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    1. Roberto Martino & Phu Nguyen-Van, 2014. "Labour market regulation and fiscal parameters: A structural model for European regions," Working Papers of BETA 2014-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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    More about this item

    Keywords

    Bayesian factor-augmented model; innovation; MCMC; panel data; productivity;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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