Correcting for biases when estimating production functions: an illusion of the laws of algebra?
Abstractthis paper argues that the true cause of the endogeneity bias that allegedly appears when estimating production functions, and which the literature has tried to deal with since the 1940s, is s imply the result of omitted-variable bias due to an incorrect approximation to an accounting identity. As a result we question recent attempts to solve the problem by developing new estimators.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Cambridge Journal of Economics.
Volume (Year): 32 (2008)
Issue (Month): 3 (May)
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Other versions of this item:
- Jesus Felipe & Rana Hasan & J. S. L. McCombie, 2004. "Correcting For Biases When Estimating Production Functions: An Illusion Of The Laws Of Algebra?," CAMA Working Papers 2004-13, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
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