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Nonparametric Identification of Production Function, Total Factor Productivity, and Markup from Revenue Data

Hiroyuki Kasahara, Yoichi Sugita

arXiv 30 Oct 2020 · Econometrics · 1 citations (OpenAlex)

arXiv:2011.00143 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Commonly used methods of production function and markup estimation assume that a firm's output quantity can be observed as data, but typical datasets contain only revenue, not output quantity. We examine the nonparametric identification of production function and markup from revenue data when a firm faces a general nonparametri demand function under imperfect competition. Under standard assumptions, we provide the constructive nonparametric identification of various firm-level objects: gross production function, total factor productivity, price markups over marginal costs, output prices, output quantities, a demand system, and a representative consumer's utility function.

Citation extraction

38
references
117
in-text mentions
38
distinct cited
0
self-citations
16,930
main-text words

appendix boundary found by appendix_command · 68% of the source is main text. Read the extracted text to check this.

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
1De Loecker, J (2011) Product Differentiation, Multiproduct Firms, and Estimating the Impact of Trade Liberalization on Productivity1.000103100%
2Klette, T. J. and Griliches, Z (1996) The Inconsistency of Common Scale Estimators When Output Prices Are Unobserved and Endogenous1.00093100%
3Marschak, J. and Andrews, W (1944) Random Simultaneous Equations and the Theory of Production1.00064100%
4De Loecker, J. and Warzynski, F (2012) Markups and Firm-Level Export Status0.9507486%
5Chiappori, P.-A., Komunjer, I., and Kristensen, D (2015) Nonparametric Identification and Estimation of Transformation Models0.93511382%
6Hall, R. E (1988) The Relation between Price and Marginal Cost in US Industry0.9285480%
7Ackerberg, D. A., Caves, K., and Frazer, G (2015) Identification Properties of Recent Production Function Estimators0.874112100%
8Gandhi, A., Navarro, S., and Rivers, D. A (2020) On the Identification of Gross Output Production Functions0.87452100%
9Matsuyama, K. and Ushchev, P (2017) Beyond CES: Three Alternative Cases of Flexible Homothetic Demand Systems, Buffett Institute Global Poverty Research Lab Working…0.7639344%
10Bond, S., Hashemi, A., Kaplan, G., and Zoch, P (2020) Some Unpleasant Markup Arithmetic: Production Function Elasticities and Their Estimation from Production Data, NBER Working Pape…0.73732100%

Showing the top 10 of 38 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Identification and Estimation of Production Function with Unobserved Heterogeneity Hiroyuki Kasahara Vancouver School of Economics University of British Columbia [email removed] Paul Schrimpf Vancouver School of Economics University of British Columbia [email removed] Michio Suzuki Tohoku University Cabinet Office, Government of Japan [email removed]0.40511
2Nonparametric Identification and Estimation of Production Functions Invariant to Productivity Dynamics0.40511