EconPapers    
Economics at your fingertips  
 

Estimating Potential Output with a Production Function for France, Germany and Italy

M. Baghli, Christophe Cahn () and Jean-Pierre Villetelle ()

Working papers from Banque de France

Abstract: This paper discusses the supply conditions for economic growth in terms of potential GDP estimated by the production function approach for France, Germany and Italy for the 1986:2003 period. The aim of this study is twofold: first, we keep a consistent framework as regards national account institutional sectors. Second, after defining Total Factor Productivity (TFP) in the so-called productive sector from the Solow residual, we specify it in a general framework for the three countries as a function of a time trend corrected for the effects of the age of equipments and the capacity utilisation rate (CUR). This framework allows to distinguish temporal considerations: in the medium to long term, the variables that could generate short to medium term fluctuations in potential output growth are assumed to be stable at a structural level. This implies modifications of the functional specifications related to the time horizon.

Keywords: Potential growth; Production function; Total factor productivity; Age of equipments. (search for similar items in EconPapers)
JEL-codes: C51 E32 O11 O47 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... g-paper_146_2006.pdf (application/pdf)

Related works:
Chapter: Estimating Potential Output with a Production Function for France, Germany and Italy (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:146

Access Statistics for this paper

More papers in Working papers from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().

 
Page updated 2022-05-18
Handle: RePEc:bfr:banfra:146