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Business Sector Production in the Short and Long Run in Israel

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  • Michael Beenstock

Abstract

Engle-Granger representation theory is used to estimate the secular and cyclical determinants of business output in Israel during 1960–1988. The specification of the secular production function is based on the technique of cointegration, while the cyclical, or short-term, production function is specified in terms of an error correction model. In the preferred model of the secular production function returns to scale are slightly increasing and the productivity of Palestinian workers is approximately 40 percent of Israeli workers. In the short-term production function total factor productivity is pro-cyclical. Copyright Kluwer Academic Publishers 1997

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  • Michael Beenstock, 1997. "Business Sector Production in the Short and Long Run in Israel," Journal of Productivity Analysis, Springer, vol. 8(1), pages 53-69, March.
    • Handle: RePEc:kap:jproda:v:8:y:1997:i:1:p:53-69
    DOI: 10.1023/A:1007724414825
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    References listed on IDEAS

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    Cited by:

    1. Gad Allon & Michael Beenstock & Steven Hackman & Ury Passy & Alexander Shapiro, 2007. "Nonparametric estimation of concave production technologies by entropic methods," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(4), pages 795-816.
    2. Beenstock, Michael & Azoulay, Eddy & Offenbacher, Akiva & Sulla, Olga, 2003. "A macroeconometric model with oligopolistic banks: monetary control, inflation and growth in Israel," Economic Modelling, Elsevier, vol. 20(3), pages 455-486, May.

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