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Assessing firm heterogeneity within industries for the Chilean economy

Diego Vivanco

Economic Statistics Series from Central Bank of Chile

Abstract: Current efforts to measure Trade in Value Added (TiVA) using Input-Output Tables (IOT) have come across challenges regarding the homogenous production functions assumptions embedded in them. This work proposes a method to account for the heterogeneity within industries for the Chilean economy, providing technical coefficients related to market orientation, firm’s size and ownership. This method is capable of overcoming the aggregate nature of the IOT, and reports a more detailed characterization of firms addressing the three dimensions aforementioned. By doing this, the proposal is capable of showing the heterogeneity in production functions within industries.

Date: 2019-02
New Economics Papers: this item is included in nep-eff
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https://www.bcentral.cl/documents/33528/133329/EEE_127_final.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchee:127

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