Ulrich Doraszelski, Lixiong Li
arXiv 26 Nov 2025 · Econometrics · publishedAEA Papers and Proceedings (2026)
arXiv:2511.21578 · PDF · DOI · OpenAlex · Extracted main text
We develop a generalized control function approach to production function estimation. Our approach accommodates settings in which productivity evolves jointly with other unobservable factors such as latent demand shocks and the invertibility assumption underpinning the traditional proxy variable approach fails. We provide conditions under which the output elasticity of the variable input -- and hence the markup -- is nonparametrically point-identified. A Neyman orthogonal moment condition ensures oracle efficiency of our GMM estimator. A Monte Carlo exercise shows a large bias for the traditional approach that decreases rapidly and nearly vanishes for our generalized control function approach.
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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 | Ackerberg, Daniel A. and Caves, Kevin and Frazer, Garth Identification properties of recent production function estimators | 0.405 | 1 | 1 | 100% |
| 2 | Chernozhukov, Victor and Chetverikov, Denis and Demirer, Mert and Du… Double/debiased machine learning for treatment and structural parameters | 0.405 | 1 | 1 | 100% |
| 3 | De Loecker, Jan and Warzynski, Frederic Markups and firm-level export status | 0.405 | 1 | 1 | 100% |
| 4 | De Loecker, Jan Detecting learning by exporting | 0.405 | 1 | 1 | 100% |
| 5 | Doraszelski, Ulrich and Jaumandreu, Jordi R&D and productivity: Estimating endogenous productivity self | 0.405 | 1 | 1 | 100% |
| 6 | Doraszelski, Ulrich and Li, Lixiong Production function estimation without invertibility: Imperfectly competitive environments and demand shocks self | 0.405 | 1 | 1 | 100% |
| 7 | Gandhi, Amit and Navarro, Salvador and Rivers, David A On the identification of gross output production functions | 0.405 | 1 | 1 | 100% |
| 8 | Griliches, Zvi and Mairesse, Jacques Production functions: The search for identification | 0.405 | 1 | 1 | 100% |
| 9 | Levinsohn, James and Petrin, Amil Estimating production functions using inputs to control for unobservables | 0.405 | 1 | 1 | 100% |
| 10 | Olley, G. Steven and Pakes, Ariel The dynamics of productivity in the telecommunications industry | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 10 scored citations.