Arbeitspapier

Estimating Production Functions of Multiproduct Firms

Despite the fact that multiproduct firms constitute a considerable share of firms and account for an even greater share of production, virtually all production function estimates are based on the assumption that firms are single-product producers. The single-product assumption is made due to lack of data on input allocation across the various product lines multiproduct firms operate. I provide a method to estimate product-level production functions without observable input allocations. The empirical application and Monte Carlo simulations show that the single-product firm assumption leads to biased parameter and productivity estimates and overestimated productivity differences between firms.

Sprache
Englisch

Erschienen in
Series: ETLA Working Papers ; No. 37

Klassifikation
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Production, Pricing, and Market Structure; Size Distribution of Firms
Firm Performance: Size, Diversification, and Scope
Thema
Multiproduct firm
production function
productivity

Ereignis
Geistige Schöpfung
(wer)
Valmari, Nelli
Ereignis
Veröffentlichung
(wer)
The Research Institute of the Finnish Economy (ETLA)
(wo)
Helsinki
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Valmari, Nelli
  • The Research Institute of the Finnish Economy (ETLA)

Entstanden

  • 2016

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