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Methodological Problems in The Econometric Estimation of Production Functions

  • Maria Kazakova

    ()

    (Russian Presidential Academy of National Economy and Public Administration)

In estimating production functions of the researcher is faced with a number of problems, which in the most general form, can be divided into two groups: the problems associated with most econometric estimation techniques, and problems of measurement factors. In the econometric estimation of production functions of the two main problems are linearization of the functional forms and elimination of endogenous explanatory variables. The latter problem is specific to mikroproizvodstvennyh functions, so it we discuss in more detail. Using statistics available in most cases leads to an inaccurate measurement of the volume and cost of factors of production firm that can shift the assessments of the technical characteristics of the production functions. In this paper we detail the mechanism and causes of such bias Example mikroproizvodstvennyh functions. Particular attention is paid to such specific microeconomic production functions as the problem of endogeneity of explanatory variables. Microfunctions also applied to the problems connected with measuring the volume of output and factor costs.

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Paper provided by Russian Presidential Academy of National Economy and Public Administration in its series Working Papers with number 32.

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Length: 62 pages
Date of creation: May 2013
Date of revision:
Handle: RePEc:rnp:wpaper:32
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