Analysis of Factor Elasticity and Total Factor Productivity in Prefectural Economies in Japan

Abstract

General forms of models for the cross-prefectural production function in Japan are constructed. In addition, a set of procedures for parameter estimation based on Bayesian linear modeling and the Bayesian model average approach are developed. We also show the results of parameter estimation for analyzing the structure and performance of prefectural economies in Japan. Finally, based on the estimated results, similarities in prefectural economies in Japan are analyzed using a multi-dimensional scaling method.