Gross Output Production Function Estimation

The paper presented in this PRICE Seminar develops a novel method to estimate production functions. Earlier papers rely on special assumptions about the functional form of production functions. The authors‘ approach efficiently estimates all parameters of any production functions with Hicks-neutral productivity without additional exogenous variables or sources of variation in flexible input demand. They provide Monte Carlo Simulation evidence oft the authors‘ method’s performance and test their approach on empirical data from Chilean and Colombian manufacturing industries.