Identification of heterogeneous elasticities in gross-output production functions

Tong Li and Yuya Sasaki

Journal of Econometrics, 2024, vol. 238, issue 2

Abstract: This paper presents the identification of heterogeneous elasticities in gross-output production functions with non-separable unobserved productivity. We propose that the ex-ante flexible input cost shares identify the heterogeneous output elasticities with respect to flexible inputs for each firm. Applying the proposed method to a panel of firms in the food production industry in Chile, we find that the extent of heterogeneity in the output elasticities with respect to intermediate inputs has significantly declined from 1985 to 1995, with its distribution tending to concentrate toward zero as time progresses.

Keywords: Gross-output production function; Heterogeneous elasticity; Identification (search for similar items in EconPapers)
JEL-codes: C20 C50 L20 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304407623003536
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:238:y:2024:i:2:s0304407623003536

DOI: 10.1016/j.jeconom.2023.105637

Access Statistics for this article

Journal of Econometrics is currently edited by T. Amemiya, A. R. Gallant, J. F. Geweke, C. Hsiao and P. M. Robinson

More articles in Journal of Econometrics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().