Department of Economics Seminar Series – Salvador Navarro
Presented by: University of CalgaryCategory: Other Event
Price: $0
Date: March 7, 2014 – March 7, 2014
Address: 2500 University Drive NW, Calgary, Alberta T2N 1N4
Website: http://www.ucalgary.ca/
“On the Identification of Production Functions: How Heterogeneous is Productivity?” Abstract: We show that existing practices for estimating production functions suffer from a fundamental non-identification problem due to flexible inputs, such as intermediate inputs. Using a transformation of the firm’s first order condition, we develop a new identification strategy and propose a simple nonparametric estimator for the production function and productivity. We show that the alternative of approximating the effects of intermediate inputs using a value-added production function does not solve the identification problem. Applying our approach to plant-level data from Colombia and Chile, we find that a gross output production function implies fundamentally different patterns of productivity heterogeneity than a value-added specification. Friday, March 7, 2014 3:00 – 4:30 pm SS 423
Location:
SS 423
Speaker:
Salvador Navarro, University of Western Ontario
More information at http://www.ucalgary.ca/events/calendar/department-economics-seminar-series-salvador-navarro