Estimating returns to scale with large imperfect panels
In this paper, the authors provide systematic panel-based econometric estimates of plant-level returns to scale for various 3-digit and 4-digit manufacturing industries, using panel data for Chilean plants. The paper attempts to answer two questions: 1) Do policies that promote"bigness"in manufacturing plants also promote greater productivity?; and 2) As plants grow, do they become more efficient? The paper is organized as follows. First, the author's assumptions regarding technology and behavior are presented. The following section discusses alternative estimators that deal with different aspects of the econometric problems they faced. Finally, applications of the alternative estimators to various 3-digit and 4-digit industries are reported and an attempt is made to determine which returns to scale estimates are the most reliable.
|Date of creation:||31 Aug 1991|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Tybout, James & de Melo, Jaime & Corbo, Vittorio, 1990.
"The effects of trade reforms on scale and technical efficiency : new evidence from Chile,"
Policy Research Working Paper Series
481, The World Bank.
- Tybout, James & de Melo, Jamie & Corbo, Vittorio, 1991. "The effects of trade reforms on scale and technical efficiency : New evidence from Chile," Journal of International Economics, Elsevier, vol. 31(3-4), pages 231-250, November.
- Zvi Griliches & Jerry A. Hausman, 1984.
"Errors in Variables in Panel Data,"
NBER Technical Working Papers
0037, National Bureau of Economic Research, Inc.
- Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
- Jovanovic, Boyan & Lach, Saul, 1989.
"Entry, Exit, and Diffusion with Learning by Doing,"
American Economic Review,
American Economic Association, vol. 79(4), pages 690-699, September.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, "undated". "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
- Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:754. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.