Nonparametric Identification of Production Function, Total Factor Productivity, and Markup from Revenue Data

Hiroyuki Kasahara and Yoichi Sugita

No 8667, CESifo Working Paper Series from CESifo

Abstract: Commonly used methods of production function estimation assume that a firm’s output quantity can be observed as data, but typical datasets contain only revenue, not output quantity. We examine the nonparametric identification of production function from revenue data when a firm faces a general nonparametric demand function under imperfect competition. Under standard assumptions, we provide the constructive nonparametric identification of various firm-level objects: gross production function, total factor productivity, price markups over marginal costs, output prices, output quantities, a demand system, and a representative consumer’s utility function.

Keywords: nonparametric identification; production function; markup; total factor productivity; revenue (search for similar items in EconPapers)
JEL-codes: C14 L11 L25 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-bec, nep-ecm, nep-eff and nep-ore
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Citations: View citations in EconPapers (8)

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Working Paper: Nonparametric Identification of Production Function, Total Factor Productivity, and Markup from Revenue Data (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8667

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