| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP17079 |
| DP17079 Production function estimation using observed price changes | |
| Xulia González; Saul Lach; Daniel Miles | |
| 发表日期 | 2022-04-25 |
| 出版年 | 2022 |
| 语种 | 英语 |
| 摘要 | The estimation of production functions with firm-level data is hampered by the non-observability of real quantities (output and inputs). An increasing number of papers use reported price changes to construct firm-specific price indices which are then used to deflate nominal quantities. We argue that this procedure does not address the fundamental problem of the non-observability of prices because it introduces an initial condition given by the price level in the base year chosen to construct the price index. Because this price level is unobserved, this procedure generates an omitted variable bias (OVB) whose importance can be gauged by the non-robustness of the estimated production function parameters to the choice of base year. The OVB disappears when firm-specific fixed effects are incorporated in the estimation of the production function. We illustrate using simulations and a panel of Spanish manufacturing firms. |
| 主题 | Industrial Organization |
| 关键词 | Production function estimation Productivity Unobserved prices Omitted variable bias |
| URL | https://cepr.org/publications/dp17079-0 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/546259 |
| 推荐引用方式 GB/T 7714 | Xulia González,Saul Lach,Daniel Miles. DP17079 Production function estimation using observed price changes. 2022. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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