We investigate the issue of model uncertainty in cross-country growth regressions using Bayesian model averaging (BMA). We find that the posterior probability is very spread among many models suggesting the superiority of BMA over choosing any single model. Out-of-sample predictive results...

In this article, the authors describe the use of Gibbs sampling methods for drawing posterior inferences in a cost frontier model with an asymptotically ideal price aggregator, nonconstant returns to scale, and composed error. An empirical example illustrates the sensitivity of efficiency...

This paper develops a formal decision theoretic approach to testing for a unit root in economic time series. The approach is empirically implemented by specifying a loss function based on predictive variances; models are chosen so as to minimize expected loss. In addition, the paper broadens the...

This article seeks to improve understanding of cross-country patterns of economic growth. It adopts a stochastic production-frontier model that allows for the decomposition of output change into input, efficiency, and technical change. The production frontier is assumed to depend on effective...

This paper describes an exact, small-sample, Bayesian analysis of impulse response functions. The authors show how many common priors imply that posterior densities for impulse responses at long horizons have no moments. Their results indicate that impulse responses should be assessed on the...

This paper uses Bayesian stochastic frontier methods to measure the productivity gap between Poland and Western countries that existed before the beginning of the main Polish economic reform. Using data for 20 Western economies, Poland and Yugoslavia (1980-90) we estimate a translog stochastic...

This paper uses Bayesian stochastic frontier methods to decompose output change into technical, efficiency and input changes. In the context of macroeconomic growth exercises, which typically involve small and noisy data sets, we argue that stochastic frontier methods are useful since they...