Shape-Constrained Kernel-Weighted Least Squares: Estimating Production Functions for Chilean Manufacturing Industries

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2020
Volume: 38
Issue: 1
Pages: 43-54

Authors (4)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

In this article, we examine a novel way of imposing shape constraints on a local polynomial kernel estimator. The proposed approach is referred to as shape constrained kernel-weighted least squares (SCKLS). We prove uniform consistency of the SCKLS estimator with monotonicity and convexity/concavity constraints and establish its convergence rate. In addition, we propose a test to validate whether shape constraints are correctly specified. The competitiveness of SCKLS is shown in a comprehensive simulation study. Finally, we analyze Chilean manufacturing data using the SCKLS estimator and quantify production in the plastics and wood industries. The results show that exporting firms have significantly higher productivity.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:38:y:2020:i:1:p:43-54
Journal Field
Econometrics
Author Count
4
Added to Database
2026-01-25