Bayesian analysis of growth using stochastic frontier model

Abstract

We employ Bayesian approach to the analysis of economic growth in Poland. The results of estimation of a stochastic frontier model applied to production function of Polish voivodships in 2000 - 2004 are presented. Stochastic frontier approach allows to decompose growth into technological change, input change and efficiency change. In order to compute the posterior characteristics of the growth components we employ the Gibbs MCMC sampler.