This paper presents a somewhat new econometric framework that permits simultaneous estimation of price-cost margins, scale economies and productivity from a panel of establishment data. The econometric model contains only a few, economically interesting parameters to be estimated, but it is nevertheless consistent with a flexible (translog) underlying technology, quasi-fixed capital and the presence of persistent differences in productivity between establishments.
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Paper provided by Oslo University, Department of Economics in its series Memorandum with number
15/1998.
Find related papers by JEL classification: D40 - Microeconomics - - Market Structure and Pricing - - - General C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
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