Resource title

Estimating and Forecasting Aggregate Productivity Growth Trends in the US and Germany

Resource image

image for OpenScout resource :: Estimating and Forecasting Aggregate Productivity Growth Trends in the US and Germany

Resource description

This paper addresses the issue of estimating and forecasting productivity growth trends in the US and Germany from the perspective of a business cycle researcher who wants to use the available information in time series of aggregate labor productivity to derive a model for short- and/or long-term forecasts of labour productivity. We will use stability tests and a deterministic model with structural breaks that is estimated using the methods mentioned in Hansen (2001). The methodological approach also draws on Gordon (2003) using a Kalman filter specification. We discuss the implications of unit-root assumptions for long-term forecasts and argue in favor of a near unit-root modelling. That implies a convergence of productivity growth rates in both countries within the next 15 years.

Resource author

Georg Erber, Ulrich Fritsche

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18322

Resource license

Adapt according to the presented license agreement and reference the original author.