Identification and Estimation of Production Function with Unobserved Heterogeneity
Michio Suzuki () and
Hiroyuki Kasahara ()
Additional contact information
Paul Schrimpf: The University of British Columbia
No 924, 2015 Meeting Papers from Society for Economic Dynamics
This paper examines non-parametric identifiability of production function when production functions are heterogenous across firms beyond Hicks-neutral technology terms. Using a finite mixture specification to capture permanent unobserved heterogeneity in production technology, we show that production function for each unobserved type is non-parametrically identified under regularity conditions. We also propose an estimation procedure for production function with random coefficients based on EM algorithm. We estimate a random coefficients production function using the panel data of Japanese publicly-traded manufacturing firms and compare it with the estimate of production function with fixed coefficients estimated by the method of Gandhi, Navarro, and Rivers (2013).
New Economics Papers: this item is included in nep-ecm and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:red:sed015:924
Access Statistics for this paper
More papers in 2015 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().