Prices, profits, proxies, and production

A-Tier
Journal: Journal of Econometrics
Year: 2023
Volume: 235
Issue: 2
Pages: 666-693

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies nonparametric identification and counterfactual bounds for heterogeneous firms that can be ranked in terms of productivity. Our approach works when quantities and prices are latent, rendering standard approaches inapplicable. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or price proxies of flexibly chosen variables. We extend classical duality results for price-taking firms to a setup with discrete heterogeneity, endogeneity, and limited variation in possibly latent prices. Finally, we show that convergence results for nonparametric estimators may be directly converted to convergence results for production sets.

Technical Details

RePEc Handle
repec:eee:econom:v:235:y:2023:i:2:p:666-693
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-24