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
Posted Content
Does FDI promote regional development? Evidence from local and regional productivity spillovers in Greece
TL;DR: In this paper, the authors examine the spatial distribution of foreign-owned firms in the country and analyse the effect that their presence at the local, regional and national levels has on the productivity of domestic firms.
Journal ArticleDOI
Modeling joint production of multiple outputs in StoNED: Directional distance function approach
TL;DR: The proposed estimator is a natural extension of stochastic nonparametric envelopment of data (StoNED) framework to multiple output setting and is examined in the context of incentive regulation of the Finnish electricity distribution firms.
Posted Content
Skills, Workforce Characteristics and Firm-Level Productivity: Evidence from the Matched ABI/Employer Skills Survey
TL;DR: This paper examined the effect of workplace skills and other characteristics such as part-time status and gender on both productivity and wages in English firms and found that firms with a higher share of college-educated, full-time and male workers also tend to be more productive.
Posted Content
Are young and old workers harmful for firm productivity
Thierry Lallemand,François Rycx +1 more
TL;DR: In this paper, the authors investigated the effects of the workforce age structure on the productivity of large Belgian firms and found that a higher share of young (old) workers within firms is favorable (harmful) for firm value added per capita.
Journal ArticleDOI
The micro-level dynamics of declining labour share: lessons from the Finnish great leap
Tomi Kyyrä,Mika Maliranta +1 more
TL;DR: In contrast with the experiences of the United Kingdom and the United States, the distribution of labour and capital income has changed sharply in favour of capital in most Continental European and Nordic countries during the past two decades.
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