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Correcting for biases when estimating production functions: an illusion of the laws of algebra?

Authors :
Felipe, Jesus
Hasan, Rana
McCombie, J.S.L.
Source :
Cambridge Journal of Economics. May, 2008, Vol. 32 Issue 3, 441-459
Publication Year :
2008

Abstract

The endogeneity bias that supposedly appears in the estimation of production functions which uses value data is investigated. Findings indicate that there is no econometric solution for the said bias, which means that correcting the problem through new estimators is questionable. The use of physical quantities as the only way to approximate production functions' technological parameters is discussed.

Details

Language :
English
ISSN :
0309166X
Volume :
32
Issue :
3
Database :
Gale General OneFile
Journal :
Cambridge Journal of Economics
Publication Type :
Academic Journal
Accession number :
edsgcl.180496393