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Market Power, Scale Economies and Productivity: Estimates from a Panel of Establishment Data

Tor Klette

No 15/1998, Memorandum from Oslo University, Department of Economics

Abstract: This paper presents a somewhat new econometric framework that permits simultaneous estimation of price-cost margins, scale economies and productivity from a panel of establishment data. The econometric model contains only a few, economically interesting parameters to be estimated, but it is nevertheless consistent with a flexible (translog) underlying technology, quasi-fixed capital and the presence of persistent differences in productivity between establishments.

Keywords: ECONOMIES OF SCALE; PRODUCTIVITY (search for similar items in EconPapers)
JEL-codes: D40 C23 (search for similar items in EconPapers)
Date: 1998
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Journal Article: Market Power, Scale Economies and Productivity: Estimates from a Panel of Establishment Data (1999) Downloads
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