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
Journal ArticleDOI
FDI spillovers in new EU member states
Marcella Nicolini,Laura Resmini +1 more
TL;DR: In this article, the authors examined the impact of foreign direct investment on domestic firms' productivity using an unbalanced panel of firm-level data in Bulgaria, Poland and Romania, and found that FDI spillovers exist both within and across sectors.
ReportDOI
Testing for stochastic monotonicity
TL;DR: A test of the hypothesis of stochastic monotonicity is proposed based on the supremum of a rescaled U-statistic and it is shown that its asymptotic distribution is Gumbel.
Posted Content
Technology Spillovers from Foreign Direct Investment (FDI): an Exploration of the Active Role of MNC Subsidiaries in the Case of Argentina in the 1990s
Anabel Marin,Martin Bell +1 more
TL;DR: In this paper, the authors explore empirically the effects of these activities on technology spillovers from FDI using data for industrial firms in Argentina over the period 1992-1996, and find that significant results can be obtained incorporating subsidiaries' own technological activities as an explanatory variable of the spillover process.
Journal ArticleDOI
Governance Problems in Closely Held Corporations
TL;DR: In this paper, a large data set of closely held corporations is used to test the effectiveness of shared ownership in settings characterized by illiquidity of ownership and find that shared ownership firms report a substantially larger return on assets and lower expense-to-sales ratios.
Journal ArticleDOI
International business travel: an engine of innovation?
TL;DR: The role of short-term cross-border labor movements for innovation by estimating the recent impact of U.S. business travel to foreign countries on their patenting rates was studied in this article.
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