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Production functions and distributions of unit factor productivities: Uncovering the link

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  • Growiec, Jakub

Abstract

We derive a reversible "endogenous technology choice transform," according to which firm-level production functions and distributions of unit factor productivities are two sides of the same coin. The Cobb-Douglas function relates to Pareto distributions, and the CES to Weibull distributions.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 1 (October)
Pages: 87-90

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Handle: RePEc:eee:ecolet:v:101:y:2008:i:1:p:87-90

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Production function Distribution Unit factor productivity Technology frontier;

References

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  1. Charles I. Jones, 2004. "The Shape of Production Function and the Direction of Technical Change," NBER Working Papers 10457, National Bureau of Economic Research, Inc.
  2. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
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Cited by:
  1. Jakub Growiec, 2011. "A Microfoundation for Normalized CES Production Functions with Factor-Augmenting Technical Change," DEGIT Conference Papers c016_013, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Jakub Growiec, 2012. "Factor-Augmenting Technology Choice and Monopolistic Competition," DEGIT Conference Papers c017_038, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. Jonathan R. W. Temple, 2008. "The Calibration of CES Production Functions," Bristol Economics Discussion Papers 08/606, Department of Economics, University of Bristol, UK.
  4. Rainer Klump & Peter McAdam & Alpo Willman, 2012. "The Normalized Ces Production Function: Theory And Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 26(5), pages 769-799, December.
  5. Miguel A León-Ledesma & Peter McAdam & Alpo Willman, 2012. "Non-Balanced Growth and Production Technology Estimation," Studies in Economics 1204, Department of Economics, University of Kent.
  6. McAdam, Peter & Willman, Alpo, 2008. "Medium run redux: technical change, factor shares and frictions in the euro area," Working Paper Series 0915, European Central Bank.
  7. McAdam, Peter & Willman, Alpo, 2013. "Medium Run Redux," Macroeconomic Dynamics, Cambridge University Press, vol. 17(04), pages 695-727, June.

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