Bayesian Estimation of Capital Stock and Depreciation in the Production Function Framework

• Autorzy: Jakub Boratyński , Jacek Osiewalski
• Języki publikacji: EN

Abstrakty

EN

We propose a Bayesian approach to estimating productive capital stocks and depreciation rates within the production function framework, using annual data on output, employment and investment only. Productive capital stock is a concept related to the input of capital services to production, in contrast to the more common net capital stock estimates, representing market value of fixed assets. We formulate a full Bayesian model and employ it in a series of illustrative empirical examples. We find that parameters of our model, from which the time-path of capital is derived, are weakly identified with the data at hand. Nevertheless, estimation is feasible with the use of prior information on the production function parameters and the characteristics of productivity growth. We show how precision of the estimates can be improved by augmenting the model with an equation for the rate of return. (original abstract)

Słowa kluczowe

EN

Bayesian estimation; Bayesian inference; Production function; Capital

PL

Estymacja bayesowska; Wnioskowanie bayesowskie; Funkcja produkcji; Kapitał

• Czasopismo: Central European Journal of Economic Modelling and Econometrics (CEJEME)
• Rocznik: 2021
• Tom: 13
• Numer: nr 4
• Strony: 455--486

Twórcy

autor

Jakub Boratyński

• University of Łódź, Poland

autor

Jacek Osiewalski

• Cracow University of Economics, Poland

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Identyfikatory

DOI

10.24425/cejeme.2021.139837