A Bayesian Analysis of Total Factor Productivity Persistence

Tapas Mishra, Claude Diebolt, Mamata Parhi, Asit Ranjan Mohanty

Research output: Contribution to journalArticle


Eine Bayesianische Analyse der Persistenz der Totalen Faktorproduktivitat. This paper studies persistence properties of total factor productivity (TFP) from Bayesian perspective. Emphasizing that classical unit root test for TFP cannot determine the probability whether a stochastic shock to the series is permanent, we design a Bayesian unit root test for TFP. Examination for a set of African economies' TFP data show that the probability of having a unit root is very high for majority of countries. The evidence of high-persistence has implications for perpetual growth and business cycles.
Original languageEnglish
Pages (from-to)363-372
Issue number1
Publication statusPublished - 2010

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