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Fixed-Effect Estimation of Highly-Mobile Production Technologies

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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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  • William C. Horrace & Kurt E. Schnier, 2008. "Fixed-Effect Estimation of Highly-Mobile Production Technologies," Center for Policy Research Working Papers 87, Center for Policy Research, Maxwell School, Syracuse University.
    • Handle: RePEc:max:cprwps:87
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    Cited by:

    1. Andrew I. Friedson & William C. Horrace & Allison F. Marier, 2019. "So Many Hospitals, So Little Information: How Hospital Value‐Based Purchasing Is a Game of Chance," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 773-799, October.
    2. François-Charles Wolff & Dale Squires & Patrice Guillotreau, 2013. "The Firm's Management in Production: Management, Firm, and Time Effects in an Indian Ocean Tuna Fishery," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 547-567.
    3. Juan Agar & William C. Horrace & Christopher F. Parmeter, 2022. "Overcapacity in Gulf of Mexico reef fish IFQ fisheries: 12 years after the adoption of IFQs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(2), pages 483-506, June.
    4. Reimer, Matthew N. & Haynie, Alan C., 2018. "Mechanisms matter for evaluating the economic impacts of marine reserves," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 427-446.

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    More about this item

    Keywords

    Panel data; time-varying individual effect; spatial econometrics; fisheries; agriculture; heteroskedasticity;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative

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