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Prices, Profits, Proxies, and Production

Victor H. Aguiar, Nail Kashaev, Roy Allen

arXiv 10 Oct 2018 · Econometrics · publishedJournal of Econometrics (2021) · 1 citations (OpenAlex)

arXiv:1810.04697 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper studies nonparametric identification and counterfactual bounds for heterogeneous firms that can be ranked in terms of productivity. Our approach works when quantities and prices are latent, rendering standard approaches inapplicable. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or price proxies of flexibly chosen variables. We extend classical duality results for price-taking firms to a setup with discrete heterogeneity, endogeneity, and limited variation in possibly latent prices. Finally, we show that convergence results for nonparametric estimators may be directly converted to convergence results for production sets.

Citation extraction

71
references
121
in-text mentions
71
distinct cited
1
self-citations
13,341
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Varian (1984) The nonparametric approach to production analysis0.96510490%
2Bilodeau, Cremieux and Ouellette (2000) Hospital cost function in a non-market health care system0.92844100%
3Epple, Gordon and Sieg (2010) A new approach to estimating the production function for housing0.88119468%
4Kreps (2012) Microeconomic foundations I: choice and competitive markets0.8434375%
5Combes, Duranton and Gobillon (2021) The production function for housing: Evidence from France0.84333100%
6Albouy and Ehrlich (2018) Housing productivity and the social cost of land-use restrictions0.64422100%
7Allen and Rehbeck (2019) Identification with additively separable heterogeneity self0.64422100%
8Burke, Bergquist and Miguel (2019) Sell low and buy high: arbitrage and local price effects in Kenyan markets0.64422100%
9Fabrizio, Rose and Wolfram (2007) Do Markets Reduce Costs? Assessing the Impact of Regulatory Restructuring on US Electric Generation Efficiency0.64422100%
10De Loecker, Goldberg, Khandelwal and Pavcnik (2016) Prices, markups, and trade reform0.64422100%

Showing the top 10 of 71 scored citations.