We use a stochastic frontier production model to estimate the technical efficiency of the 21 more industrialized countries in the world for the wide period from 1966 to 2007. A Cobb-Douglas function with labour and capital as inputs, GDP as output and an efficiency term with exponential...

How do changes in market structure affect the US business cycle? We estimate a monetary DSGE model with endogenous firm/product entry and a translog expenditure function by Bayesian methods. The dynamics of net business formation allow us to identify the "competition effect", by which desired...

This paper investigates how inflation and its uncertainty impact GDP growth in eight Central and Eastern European Countries. Inflation uncertainty series are created examining several GARCH models in combination with three different distribution functions, while the nonlinear effect of inflation...

This paper provides evidence that shifts in the occupational composition of the U.S. workforce are the most important factor explaining the trend decline in the labor share over the past four decades. Estimates suggest that while there is unitary elasticity between equipment capital and...

We propose a multivariate Bayesian state space model to identify potential growth and the output gap consistent with the dynamics of the underlying production sectors of the economy and those of inflation and the labor market. Our approach allows us to decompose economic fluctuations and...

This paper models the firm's production process as a system of simultaneous technologies for desirable and undesirable outputs. Desirable outputs are produced by transforming inputs via the conventional transformation function, whereas (consistent with the material balance condition) undesirable...

This paper aims to investigate the relation between inefficiency in the Brazilian education system and municipal wealth, discussing how the actual legislation possibly influences it. To that end, we apply a stochastic frontier model which accommodates covariates in the asymmetric error component...