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...

In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major...