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Incorporating temporal and country heterogeneity in growth accounting—an application to EU-KLEMS

Listed author(s):
  • A. Peyrache

    ()

    (The University of Queensland)

  • A. N. Rambaldi

    (The University of Queensland)

Abstract The paper derives measures of sectoral productivity from a model specification that allows for cross-sectional specific trends and time varying slopes in panel models with fixed N. The specification nests a number of commonly used panel data models introduced in the literature which deal with group specific trends. The econometric model is represented in state-space form. We provide a production frontier interpretation of this group specific temporal variation and derive a post-estimation growth accounting to provide a quantitative assessment of the main factors behind sectoral labour productivity growth. We make use of the EU-KLEMS dataset, covering the period 1977–2007 for 13 countries and 20 sectors of each economy.

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File URL: http://link.springer.com/10.1007/s11123-017-0498-2
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Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 47 (2017)
Issue (Month): 2 (April)
Pages: 143-166

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Handle: RePEc:kap:jproda:v:47:y:2017:i:2:d:10.1007_s11123-017-0498-2
DOI: 10.1007/s11123-017-0498-2
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/microeconomics/journal/11123/PS2

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