The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries
We apply the panel covariate augmented Dickey-Fuller test to test stationarity of the productivity series for the OECD and Big-7 economies. The approach takes cross-sectional dependence into account. Using hours-worked per worker, we find that the series is non-stationary for the 25 OECD countries;...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-03-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353247?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1797918685705273344 |
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| author | Aviral Kumar Tiwari Faridul Islam Süleyman Bolat Phouphet Kyophilavong Byoungki Kim |
| author_facet | Aviral Kumar Tiwari Faridul Islam Süleyman Bolat Phouphet Kyophilavong Byoungki Kim |
| author_sort | Aviral Kumar Tiwari |
| collection | DOAJ |
| description | We apply the panel covariate augmented Dickey-Fuller test to test stationarity of the productivity series for the OECD and Big-7 economies. The approach takes cross-sectional dependence into account. Using hours-worked per worker, we find that the series is non-stationary for the 25 OECD countries; but for the Big-7 the results are mixed. So, this paper achieves a battery of panel unit root tests to examine the stationarity properties of the series named hours worked per employee. The study period covers 1960-2012 for the OECD and the Big 7 countries. The tests we use account for cross sectional dependence and those that do not account for such dependence. Our results suggest that an analyst might infer that hours worked fall after a positive technology shock, when it may go up in a true data-generating process. The findings also suggest that although in a true data-generating process, the series may go up from a positive technology shock, analysts may infer a fall. The stationarity of the series is relevant in determining the effect of positive technology shock on productivity. |
| first_indexed | 2024-04-10T13:33:28Z |
| format | Article |
| id | doaj.art-6261940c0b1f410e8039bd41492841a7 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:33:28Z |
| publishDate | 2017-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-6261940c0b1f410e8039bd41492841a72023-02-15T16:11:29ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-03-01716136181032The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 CountriesAviral Kumar TiwariFaridul IslamSüleyman BolatPhouphet KyophilavongByoungki KimWe apply the panel covariate augmented Dickey-Fuller test to test stationarity of the productivity series for the OECD and Big-7 economies. The approach takes cross-sectional dependence into account. Using hours-worked per worker, we find that the series is non-stationary for the 25 OECD countries; but for the Big-7 the results are mixed. So, this paper achieves a battery of panel unit root tests to examine the stationarity properties of the series named hours worked per employee. The study period covers 1960-2012 for the OECD and the Big 7 countries. The tests we use account for cross sectional dependence and those that do not account for such dependence. Our results suggest that an analyst might infer that hours worked fall after a positive technology shock, when it may go up in a true data-generating process. The findings also suggest that although in a true data-generating process, the series may go up from a positive technology shock, analysts may infer a fall. The stationarity of the series is relevant in determining the effect of positive technology shock on productivity.https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353247?publisher=http-www-cag-edu-tr-ilhan-ozturkproductivity shock panel unit root cross sectional dependence oecd and big-7 countries |
| spellingShingle | Aviral Kumar Tiwari Faridul Islam Süleyman Bolat Phouphet Kyophilavong Byoungki Kim The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries International Journal of Economics and Financial Issues productivity shock panel unit root cross sectional dependence oecd and big-7 countries |
| title | The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries |
| title_full | The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries |
| title_fullStr | The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries |
| title_full_unstemmed | The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries |
| title_short | The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries |
| title_sort | stationary of productivity shocks evidence from 25 oecd and big 7 countries |
| topic | productivity shock panel unit root cross sectional dependence oecd and big-7 countries |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353247?publisher=http-www-cag-edu-tr-ilhan-ozturk |
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