This paper provides a first attempt at an explanation of Irish economic growth along the lines proposed by the neo-classical growth theory. Production function estimates for gross domestic product are provided using both Cobb-Douglas and constant elasticity of substitution production functions. A wide range of econometric testing is employed and an error correction mechanism is used to investigate the long-run property of the estimated equation. Both functional forms are estimated using a constant and variant forms of technical progress, and under the assumption of constant and variant returns to scale. Statistical tests show an error correction model is possible only in the case of the Cobb-Douglas production function however the tests illustrate the superiority of the unrestricted Cobb-Douglas production function with the constant rate of technical progress. The result shows an elasticity of output with respect to capital and labour of about 0.34 and 0.67 respectively. Technical progress have a positive contribution to growth rate of output of 1.7% a year.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Trinity College Dublin, Department of Economics in its series Economics Technical Papers with number
962.
For technical questions regarding this item, or to correct its listing, contact: (Dylan Sutherland) The email address of this maintainer does not seem to be valid anymore. Please ask Dylan Sutherland to update the entry or send us the correct address..
Related research
Keywords:
Find related papers by JEL classification: O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models O49 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other