Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Under the production approach to markup estimation, the markup is the output elasticity of any variable input divided by the input’s share of revenue. However, output elasticities vary across producers due to non-neutral technological differences. I develop a flexible cost share estimator to account for such heterogeneity when estimating the output elasticity. This estimator generates markups that are similar when estimated with different inputs.