Bond, Stephen and UNSPECIFIED (2013) Identification and estimation of Cobb-Douglas production parameters from micro data. In: Department Seminar, 12/04/2013, University College Dublin, Dublin.Full text not available from this repository.
This paper discusses identification problems that may be important for the estimation of Cobb-Douglas production function parameters from micro data, where identification relies on cross-section variation. We highlight a problem for the estimation of parameters on quasi-fixed inputs that has not been discussed previously. We also show that factor price variation is necessary but not sufficient for the identification of parameters on flexible inputs. Simulated production data suggests that these identification problems can be relevant in samples with limited cross-section variation in input prices, and symmetric, quadratic adjustment costs. Richer variation in input prices would allow consistent estimation using the GMM procedure proposed by Blundell and Bond (2000), but would preclude the use of the estimator proposed by Olley and Pakes (1996).
|Item Type:||Conference or Workshop Item (Paper)|
|Centre:||Oxford University Centre for Business Taxation|
|Date Deposited:||16 Sep 2013 11:37|
|Last Modified:||23 Oct 2015 14:08|
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