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.
- Language
-
Englisch
- Bibliographic citation
-
Series: IFS Working Papers ; No. 05/04
- Classification
-
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
- Subject
-
Production functions
adjustment costs
identification
Cobb-Douglas-Produktionsfunktion
Anpassungskosten
- Event
-
Geistige Schöpfung
- (who)
-
Bond, Stephen
Söderbom, Måns
- Event
-
Veröffentlichung
- (who)
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Institute for Fiscal Studies (IFS)
- (where)
-
London
- (when)
-
2005
- DOI
-
doi:10.1920/wp.ifs.2005.0504
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bond, Stephen
- Söderbom, Måns
- Institute for Fiscal Studies (IFS)
Time of origin
- 2005
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