Unraveling Trend and Stationary Components of Total Factor Productivity
We propose a methodology to analyze the dynamic features of total factor productivity (TFP). Factor efficiency is assumed to evolve according to an unobserved component model which has the form of a dynamic version of factor analysis and which nests most of the specifications for technology shocks used in the literature. We show under which conditions the processes generating the components can be identified from measurements of TFP only. We also discuss how additional information on the technology shocks can be obtained from the factor demand equations associated with the production technology. The methodology is applied to quarterly data for the manufacturing industry in the Netherlands 1971.1-1990.IV. Technology is found to be driven by a stochastic trend with a first order moving average part. This finding is similar to results obtained by Lippi and Reichlin (1994) among others; The findings for TFP corroborate earlier findings for the dynamic features of technology in labor and cpaital demand equations for the manufacturing industry in the Netherlands.
Volume (Year): (1995)
Issue (Month): 39 ()
|Contact details of provider:|| Postal: |
Web page: http://annales.ensae.fr/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:1995:i:39:p:03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Gary-Bobo)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.