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Production Functions with Panel Data

In: Production and Efficiency Analysis with R

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  • Andreas Behr

    (University of Duisburg-Essen, Faculty of Business Administration and Economics)

Abstract

In this chapter, we discuss the estimation of production functions using panel data. Panel data sets include data for producing units which have been observed for several periods. Information about differences of production relations between units and of differences between time periods allows to drop some restrictive assumptions on parameter homogeneity which have to be employed in the cases of cross sectional or time series data. We discuss the pooled, the between, the within, and the random effects estimator for static models and hint for some problems when instrumenting in dynamic panel data models. The generation of data according to the different models and their estimation are demonstrated.

Suggested Citation

  • Andreas Behr, 2015. "Production Functions with Panel Data," Springer Books, in: Production and Efficiency Analysis with R, chapter 4, pages 83-111, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-20502-1_4
    DOI: 10.1007/978-3-319-20502-1_4
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