Industrial growth in Czechoslovakia 1971–1985: Total factor productivity and capital-labor substitution

Rusek, Antonin

doi:10.1016/0147-5967(89)90006-1

Cited by 11 publications

(11 citation statements)

References 3 publications

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“…For example, R 2 is not applicable with Seemingly Unrelated Regressions). The overall F-test-giving the statistical significance of the overall relationship-was less commonly reported [75,77,81]. Within our sample, only Easterly and Fischer [78] and Duffy and Papageorgiou [6] reported tests for heteroskedasticity in the error term (i.e., the fitted residual).…”

Section: Statistical Reportingmentioning

confidence: 99%

“…However, the CES function in Equation (6) cannot be transformed in the same simple manner to a linear equation without approximation, and so numerous other techniques have been developed, as evidenced by the CES sample studies shown in Figure 5. The most popular technique in the sample-used by over half the sample [1,6,46,[77][78][79]82,83]-is direct non-linear estimation of the aggregate function. Though complex, its popularity appears to be increasing, which may be due to the increased availability of econometric guidance [175], off-the-shelf programmes [30], and advances in computing power.…”

Section: Estimation Methodsmentioning

confidence: 99%

“…The first are the common statistical tests on the fitted function and its econometrically estimated coefficients. From the sample, the majority report goodness-of-fit via the coefficient of determination (R 2 ) [74,75,78,83] and the Durbin-Watson (D-W) value-testing for autocorrelation of the residuals of the regression [25,73,77,83]. (However, we also note that not all econometric techniques can generate the same statistics.…”

Section: Statistical Reportingmentioning

confidence: 99%

“…The second important aspect is the reporting of p-values on the statistical significance of individual coefficients, which is also common [6,25,77,82], but should be used (and viewed) with caution. This is because p-values are a measure of the evidence against a null hypothesis, with small p-values indicate overwhelming evidence against the null.…”

Section: Statistical Reportingmentioning

confidence: 99%

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Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

et al. 2017

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Capital-labour-energy Constant Elasticity of Substitution (CES) production functions and their estimated parameters now form a key part of energy-economy models which inform energy and emissions policy. However, the collation and guidance as to the specification and estimation choices involved with such energy-extended CES functions is disparate. This risks poorly specified and estimated CES functions, with knock-on implications for downstream energy-economic models and climate policy. In response, as a first step, this paper assembles in one place the major considerations involved in the empirical estimation of these CES functions. Discussions of the choices and their implications lead to recommendations for CES empiricists. The extensive bibliography allows those interested to dig deeper into any aspect of the CES parameter estimation process.

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Section: Statistical Reportingmentioning

confidence: 99%

Section: Estimation Methodsmentioning

confidence: 99%

Section: Statistical Reportingmentioning

confidence: 99%

Section: Statistical Reportingmentioning

confidence: 99%

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Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

et al. 2017

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“…Most empirical studies of economic growth quantify capital and labor by unadjusted values such as monetary value for capital and work hours for labor [49,66,67]. However, not all capital and labor are equally productive: different capital assets provide different services to economic production, and skilled workers are more productive than unskilled ones.…”

Section: Modeling Choicesmentioning

confidence: 99%

From Theory to Econometrics to Energy Policy: Cautionary Tales for Policymaking Using Aggregate Production Functions

et al. 2017

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Development of energy policy is often informed by economic considerations via aggregate production functions (APFs). We identify a theory-to-policy process involving APFs comprised of six steps: (1) selecting a theoretical energy-economy framework; (2) formulating modeling approaches; (3) econometrically fitting an APF to historical economic and energy data; (4) comparing and evaluating modeling approaches; (5) interpreting the economy; and (6) formulating energy and economic policy. We find that choices made in Steps 1-4 can lead to very different interpretations of the economy (Step 5) and policies (Step 6). To investigate these effects, we use empirical data (Portugal and UK) and the Constant Elasticity of Substitution (CES) APF to evaluate four modeling choices: (a) rejecting (or not) the cost-share principle; (b) including (or not) energy; (c) quality-adjusting (or not) factors of production; and (d) CES nesting structure. Thereafter, we discuss two revealing examples for which different upstream modeling choices lead to very different policies. In the first example, the (kl)e nesting structure implies significant investment in energy, while other nesting structures suggest otherwise. In the second example, unadjusted factors of production suggest balanced investment in labor and energy, while quality-adjusting suggests significant investment in labor over energy. Divergent outcomes provide cautionary tales for policymakers: greater understanding of upstream modeling choices and their downstream implications is needed.

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When and why did eastern European economies begin to fail? Lessons from a Czechoslovak/UK productivity comparison, 1921–1991

Broadberry¹,

Klein²

2011

Explorations in Economic History

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Industrial growth in Czechoslovakia 1971–1985: Total factor productivity and capital-labor substitution

Cited by 11 publications

References 3 publications

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

From Theory to Econometrics to Energy Policy: Cautionary Tales for Policymaking Using Aggregate Production Functions

When and why did eastern European economies begin to fail? Lessons from a Czechoslovak/UK productivity comparison, 1921–1991

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