arXiv 4 Mar 2022 · Econometrics · 1 citations (OpenAlex)
arXiv:2203.02220 · PDF · DOI · OpenAlex · Extracted main text
I present a new estimation procedure for production functions with latent group structures. I consider production functions that are heterogeneous across groups but time-homogeneous within groups, and where the group membership of the firms is unknown. My estimation procedure is fully data-driven and embeds recent identification strategies from the production function literature into the classifier-Lasso. Simulation experiments demonstrate that firms are assigned to their correct latent group with probability close to one. I apply my estimation procedure to a panel of Chilean firms and find sizable differences in the estimates compared to the standard approach of classification by industry.
appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.
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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Su, Liangjun, Shi, Zhentao, Phillips, Peter C. B (2016) Identifying Latent Structures in Panel Data | 1.000 | 15 | 4 | 100% |
| 2 | Gandhi, Amit, Navarro, Salvador, Rivers, David A (2020) On the Identification of Gross Output Production Functions | 1.000 | 13 | 4 | 100% |
| 3 | Ackerberg, Daniel A., Caves, Kevin, Frazer, Garth (2015) Identification Properties of Recent Production Function Estimators | 1.000 | 5 | 3 | 100% |
| 4 | Olley, G. Steven, Pakes, Ariel (1996) The Dynamics of Productivity in the Telecommunications Equipment Industry | 0.843 | 3 | 3 | 100% |
| 5 | Su, Liangjun, Wang, Xia, Jin, Sainan (2019) Sieve Estimation of Time-Varying Panel Data Models With Latent Structures | 0.843 | 3 | 3 | 100% |
| 6 | Blundell, Richard, Bond, Stephen (2000) GMM Estimation with persistent panel data: an application to production functions | 0.811 | 4 | 2 | 100% |
| 7 | Arellano, Manuel, Bond, Stephen (1991) Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations | 0.644 | 2 | 2 | 100% |
| 8 | Bai, Jushan, Ng, Serena (2002) Determining the Number of Factors in Approximate Factor Models | 0.644 | 2 | 2 | 100% |
| 9 | Griliches, Zvi, Mairesse, Jacques, Strøm, Steinar (1999) Production Functions: The Search for Identification | 0.644 | 2 | 2 | 100% |
| 10 | Kasahara, Hiroyuki, Schrimpf, Paul, Suzuki, Michio (2017) Identification and Estimation of Production Function with Unobserved Heterogeneity | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 37 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Online appendix to “Latent group structure in linear panel data models with endogenous regressors” | 0.405 | 1 | 1 |