methods applied for their estimation are as accurate as possible. A bivariate Kalman Filter (KF) model using capacity … the first-best approach for future TFP cycle estimation. This paper compares the existing method to an approach which uses …, and that this new approach leads to a reduction in the total estimation error variance and revisions required to TFP cycle …

Commission proposes a production function methodology that involves the estimation of two classes of Gaussian state space models … unobserved component models and offers frequentist as well as Bayesian estimation techniques. Additional functionalities include … preparation, model specification, and estimation processes using RGAP. …