Price, profits, proxies, and production

Arbeitspapier

This paper studies nonparametric identification and counterfactual bounds for heterogeneous firms that can be ranked in terms of productivity. Our approach works when quantities and prices are latent, rendering standard approaches inapplicable. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or price proxies of flexibly chosen variables. We extend classical duality results for price-taking firms to a setup with discrete heterogeneity, endogeneity, and limited variation in possibly latent prices. Finally, we show that convergence results for nonparametric estimators may be directly converted to convergence results for production sets.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Research Report ; No. 2022-6

Classification and Topics

• Classification: Wirtschaft ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
• Subject: Counterfactual bounds ; cost minimization ; nonseparable heterogeneity ; partial identification ; profit maximization ; production set ; revenue maximization ; shape restrictions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Aguiar, Victor H. ; Kashaev, Nail ; Allen, Roy E.
• Event: Veröffentlichung
• (who): The University of Western Ontario, Department of Economics
• (where): London (Ontario)
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/270408
• Last update: 10.03.2025, 11:45 AM CET