Structural Interpretation of Vector Autoregressions with Incomplete Identification: Revisiting the Role of Oil Supply and Demand Shocks
American Economic Review,
Traditional approaches to structural vector autoregressions (VARs) can be viewed as special cases of Bayesian inference arising from very strong prior beliefs. These methods can be generalized with a less restrictive formulation that incorporates uncertainty about the identifying assumptions themselves. We use this approach to revisit the importance of shocks to oil supply and demand. Supply disruptions turn out to be a bigger factor in historical oil price movements and inventory accumulation a smaller factor than implied by earlier estimates. Supply shocks lead to a reduction in global economic activity after a significant lag, whereas shocks to oil demand do not.
Does Machine Learning Help us Predict Banking Crises? ...
Stock of fixed assets
Stock of fixed assets Gross fixed capital formation Gross fixed capital formation includes the purchase of permanent and reproducible fixed assets as well as created...
Capital Stock Approximation with the Perpetual Inventory Method: STATA Code for the IAB Establishment Panel
FDZ-Methodenreport, H. 02,
The IAB Establishment Panel contains no direct information on establishments’ capital stock. This report presents some advice in implementing a capital stock approximation by the perpetual inventory method as proposed by Müller (2008). STATA code is provided in the appendix.
Capital Stock Approximation using Firm Level Panel Data: A Modified Perpetual Inventory Approach
Jahrbücher für Nationalökonomie und Statistik,
Many recent studies exploring conditional factor demand or factor substitution issues use firm level panel data. A considerable number of establishment panels contains no direct information on the capital input, necessary for production or cost function estimation. Incorrect measurement of capital leads to biased estimates and casts doubt on any inference on output elasticities or input substitution properties. The perpetual inventory approach, commonly used for long panels, is a method that attenuates these problems. In this paper a modified perpetual inventory approach is proposed. This method provides more reliable measures for capital input when short firm panels are used and no direct information on capital input is available. The empirical results based on a replication study of Addison et al. (2006) support the conclusion that modified perpetual inventory is superior to previous attempts in particular when fixed effects estimation techniques are used. The method thus makes a considerable number of recently established firm panels accessible to more sophisticated production function or factor demand analyses.