The two-level CES aggregate production function - that nests a CES into another CES function - has recently been used extensively in theoretical and empirical applications of macroeconomics. We examine the…
Normalising CES production functions in the calibration of basic dynamic models allows to choose technology parameters in an economically plausible way. When varia- tions in the elasticity of substitution are…
Using German firm-level data, an endogenous switching regression model within a production function framework is estimated in order to explore differences in labor productivity between IT outsourcing and non-IT…
We develop a model of R&D competition between an incumbent and a potential entrant with network externalities and durable goods. We show that the threat of entry eliminates the commitment problem that an…
When estimating the determinants of child care participation, the simultaneity in mothers' decision to work and in the decision to use child care is a major challenge. In this study, we provide evidence on the…