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Testing production functions used in empirical growth studies

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  • Ferreira, Pedro Cavalcanti
  • Issler, João Victor
  • Pessôa, Samuel de Abreu

Abstract

We estimate and test two alternative functional forms, which have been used in the growth literature, representing the aggregate production function for a panel of countries: the model of Mankiw, Romer and Weil (Quarterly Journal of Economics, 1992), and a mincerian formulation of schooling-returns to skills. Estimation is performed using instrumental-variable techniques, and both functional forms are confronted using a Box-Cox test, since human capital inputs enter in levels in the mincerian specification and in logs in the extended neoclassical growth model.

Suggested Citation

  • Ferreira, Pedro Cavalcanti & Issler, João Victor & Pessôa, Samuel de Abreu, 2003. "Testing production functions used in empirical growth studies," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 507, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
  • Handle: RePEc:fgv:epgewp:507
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    2. Christian Bjørnskov & Pierre-Guillaume Méon, 2015. "The productivity of trust," Post-Print CEB, ULB -- Universite Libre de Bruxelles, June.
    3. Ricardo Correa Cangussu & Marcio Antonio Salvato & Luciano Nakabashi, 2008. "An analysis of human capital on the Brazilian States income level: MRW versus Mincer," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211041150, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Miguel Portela & Rob Alessie & Coen Teulings, 2010. "Measurement Error in Education and Growth Regressions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(3), pages 618-639, September.
    5. Guillermo Perry & Luis Servén & Rodrigo Suescún, 2008. "Fiscal Policy, Stabilization, and Growth : Prudence or Abstinence," World Bank Publications, The World Bank, number 6818, September.
    6. Teles, Vladimir Kuhl & Cardoso, Eliana A., 2010. "A brief history of Brazil's growth," Textos para discussão 241, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    7. Juliana Kikuchi Van Zaist & Luciano Nakabashi & Márcio A. Salvato, 2009. "Retornos privados de educação individual no Paraná," Working Papers 0097, Universidade Federal do Paraná, Department of Economics.
    8. Werneck, Rogério L.F. & Irwin, Timothy & Sturzenegger, Federico & Perry, Guillermo & Servén, Luis & Mihov, Ilian & Giavazzi, Francesco & Blanchard, Olivier & Araújo, Carlos Hamilton Vasconcelos & Sues, 2011. "Fiscal Policy, Stabilization, and Growth: Prudence or Abstinence?," IDB Publications (Books), Inter-American Development Bank, number 356, March.
    9. Pierre-Guillaume Méon & Laurent Weill, 2004. "Does better governance foster efficiency? An aggregate frontier analysis," Economics of Governance, Springer, vol. 6(1), pages 75-90, January.
    10. Juliana K. Van Zaist & Luciano Nakabashi & Márcio A. Salvato, 2008. "Retorno em Escolaridade no Paraná," Working Papers 0072, Universidade Federal do Paraná, Department of Economics.
    11. Pierre‐Guillaume Méon & Khalid Sekkat & Laurent Weill, 2009. "Institutional Changes Now And Benefits Tomorrow: How Soon Is Tomorrow?," Economics and Politics, Wiley Blackwell, vol. 21(2), pages 319-357, July.
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