A Bayesian Analysis of Total Factor Productivity Persistence

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

    Research output: Contribution to journalArticle

    Abstract

    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
    JournalHISTORICAL SOCIAL RESEARCH-HISTORISCHE SOZIALFORSCHUNG
    Volume35
    Issue number1
    Publication statusPublished - 2010

    Cite this