Aggregate Production Functions and the Accounting Identity Critique: Further Reflections on Temple's Criticisms and Misunderstandings
In a reply to Felipe and McCombie (2010a), Temple (2010) has largely ignored the main arguments that underlie the accounting identity critique of the estimation of production functions using value data. This criticism suggests that estimates of the parameters of aggregate production functions cannot be regarded as reflecting the underlying technology of the industry. While Temple concedes some points, he erroneously believes that the critique holds only under some ad hoc assumptions. As a consequence, he argues that the critique works only "part-time." This rejoinder discusses Temple's arguments and demonstrates that the critique works full-time.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John G. Fernald & Brent Neiman, 2003.
"Measuring productivity growth in Asia: do market imperfections matter?,"
Working Paper Series
WP-03-15, Federal Reserve Bank of Chicago.
- John Fernald & Brent Neiman, 2011. "Growth Accounting with Misallocation: Or, Doing Less with More in Singapore," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(2), pages 29-74, April.
- John G. Fernald & Brent Neiman, 2010. "Growth accounting with misallocation: Or, doing less with more in Singapore," Working Paper Series 2010-18, Federal Reserve Bank of San Francisco.
- John G. Fernald & Brent Neiman, 2006. "Measuring the miracle: market imperfections and Asia's growth experience," Working Paper Series 2006-17, Federal Reserve Bank of San Francisco.
- John Fernald & Brent Neiman, 2006. "Measuring the Miracle: Market Imperfections and Asia's Growth Experience," 2006 Meeting Papers 785, Society for Economic Dynamics.
- John Fernald & Brent Neiman, 2010. "Growth Accounting with Misallocation: Or, Doing Less with More in Singapore," NBER Working Papers 16043, National Bureau of Economic Research, Inc.
- Jonathan Temple & Ludger Woessmann, 2004.
"Dualism and Cross-Country Growth Regressions,"
CESifo Working Paper Series
1290, CESifo Group Munich.
- John Temple & Ludger Woessmann, 2004. "Dualism and cross-country growth regressions," Bristol Economics Discussion Papers 04/560, Department of Economics, University of Bristol, UK.
- Temple, Jonathan & Wößmann, Ludger, 2006. "Dualism and cross-country growth regressions," Munich Reprints in Economics 19619, University of Munich, Department of Economics.
- Jonathan Temple & Ludger Wößmann, 2006. "Dualism and cross-country growth regressions," Ifo Working Paper Series Ifo Working Paper No. 33, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
- Temple, Jonathan & Woessmann, Ludger, 2006. "Dualism and Cross-Country Growth Regressions," CEPR Discussion Papers 5655, C.E.P.R. Discussion Papers.
- N. Gregory Mankiw & David Romer & David N. Weil, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(2), pages 407-437.
- Richard Blundell & Stephen Bond, 2000.
"GMM Estimation with persistent panel data: an application to production functions,"
Taylor & Francis Journals, vol. 19(3), pages 321-340.
- Richard Blundell & Steve Bond, 1999. "GMM estimation with persistent panel data: an application to production functions," IFS Working Papers W99/04, Institute for Fiscal Studies.
- Jesus Felipe & Rana Hasan & J. S. L. McCombie, 2004.
"Correcting For Biases When Estimating Production Functions: An Illusion Of The Laws Of Algebra?,"
CAMA Working Papers
2004-13, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Jesus Felipe & Rana Hasan & J. S. L. McCombie, 2008. "Correcting for biases when estimating production functions: an illusion of the laws of algebra?," Cambridge Journal of Economics, Oxford University Press, vol. 32(3), pages 441-459, May.
- Anwar Shaikh, 2005. "Nonlinear Dynamics and Pseudo-Production Functions," Eastern Economic Journal, Eastern Economic Association, vol. 31(3), pages 447-466, Summer.
- Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
- Jesus Felipe & J. S. L. McCombie, 2005. "WHY ARE SOME COUNTRIES RICHER THAN OTHERS? A SKEPTICAL VIEW OF MANKIW-ROMER-WEIL's TEST OF THE NEOCLASSICAL GROWTH MODEL," Metroeconomica, Wiley Blackwell, vol. 56(3), pages 360-392, 07.
When requesting a correction, please mention this item's handle: RePEc:lev:wrkpap:wp_718. 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: (Marie-Celeste Edwards)
If references are entirely missing, you can add them using this form.