The Dynamics of Productivity in the Telecommunications Equipment Industry
G. Steven Olley,Ariel Pakes +1 more
TLDR
In this paper, an empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity.Abstract:
Technological change and deregulation have caused a major restructuring of the telecommunications equipment industry over the last two decades. Our empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity. The restructuring involved significant entry and exit and large changes in the sizes of incumbents. Firms' choices on whether to liquidate, and on input quantities should they continue, depended on their productivity. This generates a selection and a simultaneity problem when estimating production functions. Our theoretical focus is on providing an estimation algorithm which takes explicit account of these issues. We find that our algorithm produces markedly different and more plausible estimates of production function coefficients than do traditional estimation procedures. Using our estimates we find increases in the rate of aggregate productivity growth after deregulation. Since we have plant-level data we can introduce indices which delve deeper into how this productivity growth occurred. These indices indicate that productivity increases were primarily a result of a reallocation of capital towards more productive establishments.read more
Citations
More filters
Book ChapterDOI
Chapter 60 Nonparametric Approaches to Auctions
Susan Athey,Philip A. Haile +1 more
TL;DR: In this paper, structural econometric approaches to auctions are discussed, including first-price sealed-bid and ascending auctions, including extensions to Dutch auctions, Internet auctions, multi-unit auctions, and multi-object auctions.
Journal ArticleDOI
Firm Performance and Evolution: Empirical Regularities in the US Microdata
TL;DR: In contrast to traditional empirical studies of competition and economic growth that examine aggregate economic variables such as industry or regional productivity, this new work concentrates on differences in the behavior of firms and their business units.
Journal ArticleDOI
Robots and Firms
TL;DR: In this paper, the authors study the microeconomic implications of robot adoption using a rich panel data set of Spanish manufacturing firms over a 27-year period (1990-2016) and provide causal evidence on two central questions: (1) which firm characteristics prompt firms to adopt robots; (2) What is the impact of robots on adopting firms relative to non-adopting firms.
Journal ArticleDOI
When Does Regulation Distort Costs? Lessons from Fuel Procurement in U.S. Electricity Generation
TL;DR: In this paper, the authors evaluate changes in fuel procurement practices by coal and gas-red power plants in the United States following state-level legislation that ended cost-of-service regulation of electricity generation.
Ownership Change, Incentives and Plant Efficiency: The Divestiture of U.S. Electric Generation Plants
James Bushnell,Catherine Wolfram +1 more
TL;DR: In this paper, the authors investigated changes in operating efficiency at plants that have been divested from utility to non-utility ownership and found that the ownership transfers had little positive and possibly negative impacts on fuel efficiency.
References
More filters
Journal ArticleDOI
The central role of the propensity score in observational studies for causal effects
TL;DR: The authors discusses the central role of propensity scores and balancing scores in the analysis of observational studies and shows that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates.
Journal ArticleDOI
Transcendental logarithmic production frontiers
TL;DR: Ebsco as mentioned in this paper focuses on additive and homogeneous production possibility frontiers that have played an important role in formulating statistical tests of the theory of production and characterizes the class of production possibility frontier that are homogeneous and additive.
Journal ArticleDOI
Markov-Perfect Industry Dynamics: A Framework for Empirical Work
Richard E. Ericson,Ariel Pakes +1 more
TL;DR: In this paper, the authors provide a model of firm and industry dynamics that allows for entry, exit, and firm-specific uncertainty generating variability in the fortunes of firms, focusing on the impact of uncertainty arising from investment in research and exploration.
Journal ArticleDOI
Root-n-consistent semiparametric regression
TL;DR: In this article, a variable aleatoire (X,Z) dans #7B-R P ×#7b-R q is considered, and an estimateur generalisant l'estimateur des moindres carres ordinaires en inserant des estimateurs non parametriques de la regression dans la projection orthogonale non lineaire sur Z is constructed.
Related Papers (5)
Estimating production functions using inputs to control for unobservables
James Levinsohn,Amil Petrin +1 more
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.
Manuel Arellano,Stephen Bond +1 more