
The level of uncertainty will depend on several factors: the nature of the functional form used in the multivariate analysis; the type of econometric technique employed; the appropriateness of the statistical assumptions embedded in the model or technique; the comprehensiveness of the variables included in the analysis; and the accuracy of the data that are utilized. [...] MFP is calculated as the difference between the rate of growth of business sector output and a weighted sum of the growth in labour and capital that are applied by the business sector to the production process. [...] To address the uncertainty surrounding the true rate of return, a sensitivity analysis is performed which uses several approaches to gauge the robustness of results to alternate estimates of the rate of return: 1. Rate of return estimates of plus/minus 10 percentage points around the 17% value used in the main calculations are used to assess the sensitivity of results to alternate values of the ra [...] Multifactor productivity is the difference between the rate of growth of business sector output and a weighted sum of the growth in labour and capital that are applied by the business sector to the production process. [...] It examines the impact of public capital on private sector labour productivity, and investigates the impact of imputing an economic rate of return to the use of public capital on estimates of GDP in the business sector and the total economy.
Page Count:
30
Publication Date:
2009-01-01
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