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Fixed-Effect Estimation of Highly-Mobile Production Technologies

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Author Info
William C. Horrace () (Center for Policy Research, Maxwell School, Syracuse University, Syracuse, NY 13244-1020)
Kurt E. Schnier

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Abstract

Revised from November 2006 and July 2007. We consider fixed-effect estimation of a production function where inputs and outputs vary over time, space, and cross-sectional unit. Variability in the spatial dimension allows for time-varying individual effects, without parametric assumptions on the effects. Asymptotics along the spatial dimension provide consistency and normality of the marginal products. A finite-sample example is provided: a production function for bottom-trawler fishing vessels in the flatfish fisheries of the Bering Sea. We find significant spatial variability of output (catch) which we exploit in estimation of a harvesting function.

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File URL: http://www-cpr.maxwell.syr.edu/cprwps/pdf/wp87.pdf
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Publisher Info
Paper provided by Center for Policy Research, Maxwell School, Syracuse University in its series Center for Policy Research Working Papers with number 87.

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Length: 34 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:max:cprwps:87

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Related research
Keywords: Panel data; time-varying individual effect; spatial econometrics; fisheries; agriculture; heteroskedasticity;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative

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This page was last updated on 2009-11-27.

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