Threshold Effects in the Public Capital Productivity: An International Panel Smooth Transition Approach

Gilbert Colletaz () and Christophe Hurlin
Additional contact information
Gilbert Colletaz: LEO - Laboratoire d'Économie d'Orleans [UMR7322] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: Using a nonlinear panel data model, we examine the threshold effects in the productivity of the public capital stocks for a panel of 21 OECD countries observed over 1965-2001. Using the so-called "augmented production function" approach, we estimate various specifications of a Panel Smooth Threshold Regression (PSTR) model recently developed by Gonzalez, Teräsvirta and Van Dijk (2004). One of our main results is the existence of strong threshold effects in the relationship between output and private and public inputs: whatever the transition mechanism specified, tests strongly reject the linearity assumption. Moreover, this model allows cross-country heterogeneity and time instability of the productivity without specification of an ex-ante classification over individuals. Consequently, it is possible to give estimates of productivity coefficients for both private and public capital stocks at any time and for all the countries. Finally we proposed estimates of individual time varying elasticities that are much more reasonable than those previously published.

Keywords: Public Capital; Panel Smooth Threshold Regression Models (search for similar items in EconPapers)
Date: 2008-08
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00724208
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://shs.hal.science/halshs-00724208/document (application/pdf)

Related works:
Working Paper: Threshold Effects in the Public Capital Productivity: An International Panel Smooth Transition Approach (2006)
Working Paper: Threshold Effects in the Public Capital Productivity: an International Panel Smooth Transition Approach (2006)
Working Paper: Threshold Effects in the Public Capital Productivity: an International Panel Smooth Transition Approach (2006)
Working Paper: Threshold Effects in the Public Capital Productivity: An International Panel Smooth Transition Approach (2006)
Working Paper: Threshold Effects of the Public Capital Productivity: an International Panel Smooth Transition Approach (2006)
Working Paper: Threshold Effects of the Public Capital Productivity: an International Panel Smooth Transition Approach (2006)
Working Paper: Threshold Effects of the Public Capital Productivity: An International Panel Smooth Transition Approach (2006)
Working Paper: Threshold Effects of the Public Capital Productivity: An International Panel Smooth Transition Approach (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:hal:wpaper:halshs-00724208

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().