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Untested assumptions and data slicing: a critical review of firm-level production function estimators

Abstract:

This paper surveys the most popular parametric and semi-parametric estimators for Cobb-Douglas production functions arising from the econometric literature of the past two decades. We focus on the different approaches dealing with 'transmission bias' in firm-level studies, which arises from firms' reaction to unobservable productivity realisations when making input choices. The contribution of the paper is threefold: we provide applied economists with (i) an in-depth discussion of the estimat...

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Publication status:
Published

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Publisher:
University of Oxford
Series:
Department of Economics Discussion Paper Series
Publication date:
2010-11-01
Paper number:
513
Keywords:
Pubs id:
1143912
Local pid:
pubs:1143912
Deposit date:
2020-12-15

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