Teaching | Seminari Didattici | Seminari e Convegni
Teaching Seminari Didattici | Seminari e Convegni
Seminario | Erol Taymaz
Aula Master
Erol Taymaz - Middle East Technical University of Ankara (METU)
Continuation of the Tutorial in "Estimation of production functions, productivity and efficiency"
Seminario Dottorale – Dottorato di Ricerca in Economia e Politiche dei Mercati e delle Imprese
Content
This graduate-level seminar provides an introduction to the estimation of production functions. The seminar consists of short lectures on the characteristics of production functions, functional forms, and parametric estimation. Using simulated data, we will discuss the effects of implicit or explicit assumptions on estimation results in detail. We will use R to generate the data and estimate our models. Upon completion of the seminar, participants should be able to estimate production functions using real firm-level data, and to understand/to check the likely effects of their assumptions on estimation results.
Prerequisites
Participants should have a basic understanding of econometrics (regression analysis) and microeconomics. Knowledge of programming, specifically in R, is useful. Participants should have R installed on their computers. The rmarkdown, data.table, fixest, lme4, plm, gmm, prodest, and ggplot2 packages will be used in the examples and should also be installed. Participants are encouraged to use RStudio or Positron IDEs.
Topics
Why estimate production functions
Type of productiion functions
Forms of production functions
Technological change and substitution
Estimation methods
OLS
GMM
Problems in estimating production functions
Functional form
Technological change
Putty-clay technology
Endogeneity/omitted variable bias
Selection
Hetoregenity
Readings
Blundell, Richard and Stephen Bond (2000), “GMM Estimation with Persistent Panel Data: An Application to Production Functions”, Econometric Reviews, 19(3): 321-340.
Gechert, Sebastian, Tomas Havranek, Zuzana Irsova and Dominika Kolcunova (2022), “Measuring capital-labor substitution: The importance of method choices and publication bias”, Review of Economic Dynamics, 45: 55-82.
Kawaguchi, Kohei (2025), Topics in Empirical Industrial Organization, https://kohei-kawaguchi.github.io/EmpiricalIO/
De Ridder, Maarten, Basile Grassi and Giovanni Morzenti (2025), The Hitchhiker’s Guide to Markup Estimation: Assessing Estimates from Financial Data, Working paper.
