Adjustment costs and the identification of Cobb Douglas production functions

Arbeitspapier

Cobb Douglas production function parameters are not identified from cross-section variation when inputs are perfectly flexible and chosen optimally, and input prices are common to all firms. We consider the role of adjustment costs for inputs in identifying these parameters in this context. The presence of adjustment costs for all inputs allows production function parameters to be identified, even in the absence of variation in input prices. This source of identification appears to be quite fragile when adjustment costs are deterministic, but more useful in the case of stochastic adjustment costs. We illustrate these issues using simulated production data.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFS Working Papers ; No. 05/04

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Production and Organizations: General ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Thema: Production functions ; adjustment costs ; identification ; Cobb-Douglas-Produktionsfunktion ; Anpassungskosten

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bond, Stephen ; Söderbom, Måns
• Ereignis: Veröffentlichung
• (wer): Institute for Fiscal Studies (IFS)
• (wo): London
• (wann): 2005

Weitere Informationen

• DOI: doi:10.1920/wp.ifs.2005.0504
• Handle: http://hdl.handle.net/10419/71565
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ