Arbeitspapier
Adjustment costs and the identification of Cobb Douglas production functions
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.
- Sprache
-
Englisch
- Erschienen in
-
Series: IFS Working Papers ; No. 05/04
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
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
adjustment costs
identification
Cobb-Douglas-Produktionsfunktion
Anpassungskosten
Ereignis
Geistige Schöpfung
(wer)
Bond, Stephen
Söderbom, Måns
Söderbom, Måns
Ereignis
Veröffentlichung
(wer)
Institute for Fiscal Studies (IFS)
(wo)
London
(wann)
2005
- DOI
-
doi:10.1920/wp.ifs.2005.0504
- Handle
- Letzte Aktualisierung
-
12.07.2024, 13:19 MESZ
Objekttyp
- Arbeitspapier
Beteiligte
- Bond, Stephen
- Söderbom, Måns
- Institute for Fiscal Studies (IFS)
Entstanden
- 2005
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