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Market Power, Scale Economies and Productivity: Estimates from a Panel of Establishment Data

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  • Klette, T.J.

Abstract

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.

Suggested Citation

  • Klette, T.J., 1998. "Market Power, Scale Economies and Productivity: Estimates from a Panel of Establishment Data," Memorandum 15/1998, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:1998_015
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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/1998/Memo-15-1998.pdf
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    References listed on IDEAS

    as
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    8. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ECONOMIES OF SCALE ; PRODUCTIVITY;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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