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Assessing firm heterogeneity within industries for the Chilean economy

Author

Listed:
  • Diego Vivanco

Abstract

Current efforts to measure Trade in Value Added (TiVA) using Input-Output Tables (IOT) have come across challenges regarding the homogenous production functions assumptions embedded in them. This work proposes a method to account for the heterogeneity within industries for the Chilean economy, providing technical coefficients related to market orientation, firm’s size and ownership. This method is capable of overcoming the aggregate nature of the IOT, and reports a more detailed characterization of firms addressing the three dimensions aforementioned. By doing this, the proposal is capable of showing the heterogeneity in production functions within industries.

Suggested Citation

  • Diego Vivanco, 2019. "Assessing firm heterogeneity within industries for the Chilean economy," Economic Statistics Series 127, Central Bank of Chile.
  • Handle: RePEc:chb:bcchee:127
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    References listed on IDEAS

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