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dc.titleEconometric Estimation of the Capital Stock and the Production Function: The Case of the Bahamas, Barbados, Jamaica, and Suriname
dc.contributor.authorBaca Campodónico, Jorge F.
dc.contributor.authorReyes-Tagle, Gerardo
dc.contributor.orgunitFiscal Management Division
dc.coverageBahamas
dc.coverageBarbados
dc.coverageJamaica
dc.coverageSuriname
dc.coverageThe Caribbean
dc.coverageLatin America and the Caribbean
dc.date.available2023-02-24T11:31:37
dc.date.issue2023-02-21T00:02:00
dc.description.abstractMost studies of total factor productivity (TFP) and long-term production functions use capital stock time series obtained from ad hoc estimates of the rate of depreciation and the initial capital stock. This paper introduces a methodology that allows the simultaneous econometric estimation of the capital stock, the production function parameters, the rate of depreciation, and the initial capital stock. The proposed methodology, using the underlying cost function to the production function, allows for the incorporation of information about the relative prices of the factors of production and the possibility of having variable depreciation rates over time. The proposed methodology is applied to the case of the Bahamas, Barbados, Jamaica, and Suriname for the period 1989-2019 using national accounts data published by the statistical services of these countries.
dc.format.extent46
dc.identifier.doihttp://dx.doi.org/10.18235/0004749
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Econometric-Estimation-of-the-Capital-Stock-and-the-Production-Function-The-Case-of-the-Bahamas-Barbados-Jamaica-and-Suriname.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectRating
dc.subjectValue Added
dc.subjectFiscal Management
dc.subjectDebtor Finance
dc.subjectNational Accounts
dc.subjectGross Domestic Product
dc.subjectEconomy
dc.subject.jelcodeC01 - Econometrics
dc.subject.jelcodeC36 - Instrumental Variables (IV) Estimation
dc.subject.jelcodeD24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity
dc.subject.jelcodeE23 - Production
dc.subject.jelcodeO47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsCobb-Douglas;TFP;capital stock
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02655
idb.operationRG-T3259
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