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
Skill Dispersion and Firm Productivity: An Analysis with Employer‐Employee Matched Data
TL;DR: In this article, the authors studied the relation between workers' skill dispersion and firm productivity using a unique data set of Italian manufacturing firms with individual records on all their workers, and found that a firm's productivity is positively related to skill distribution within occupational status groups (production and nonproduction workers) and negatively related to skills dispersion between these groups.
Posted Content
Innovation and performance in manufacturing industries: A comparison of the Nordic countries
TL;DR: The availability of new internationallyharmonized innovation survey data collected from OECD countries has created some interesting opportunities for studying the following two key areas: (1) the (2) the
Journal ArticleDOI
Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries
Joshua Drucker,Edward Feser +1 more
TL;DR: In this article, the authors investigate whether a more concentrated regional industrial structure limits agglomeration economies and ultimately diminishes the economic performance of firms in that industry, especially small ones.
Product innovation and exports: Evidence from Spanish manufacturing
TL;DR: In this article, the authors analyze the effect of innovation on the decision of firms to export and find that product innovation is a very important driver of exports for small non-exporting firms.
Posted Content
Long-Term Care and Family Bargaining
Maxim Engers,Steven Stern +1 more
TL;DR: In this paper, a structural model of how families decide who should care for elderly parents is presented, using data from the National Long-Term Care Survey to estimate and test the parameters of the model.
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