Estimating Production Functions Using Inputs to Control for Unobservables

By J. Levinsohn, Amil Petrin. 2003

6,113 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/5fa72e5dc825471ca063892f31fb42088b81d9b4

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Citations in the corpus

Information Environment and the Investment Decisions of Multinational Corporations (2013, neutral): “25 Because the ORBIS database provides no information on intermediate input variables, we are not able to adjust for the possible simultaneity bias in our TFP estimates (Levinsohn and Petrin 2003).”
Firm Productivity in Bangladesh Manufacturing Industries (2006, background): “10 See Levinsohn and Petrin (2003) for more details on the bias of OLS production function estimates.”
Markups and Firm-Level Export Status (2012, neutral): “…(logΘit), can be decomposed as a productivity shock (ωit), which is correlated with inputs, and a i.i.d.term (εit). logΘit = ωit + εit (9) 10The recent model of Melitz and Ottaviano (2008), where firms compete in prices and products are horizontally differentiated, generates a firm…”
Recasting the Iron Rice Bowl: The Reform of China's State-Owned Enterprises (2017, background): “11, equation (12) implies that the expected returns to scale in production is γ = 1.”
Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China? (2009, methodology): “…Household electronic appliances 417 77 Appendix B. Levinsohn-Petrin Estimation Procedure Although a full description of Levinsohn-Petrin estimation is beyond the scope of this paper (interested readers are referred to Levinsohn and Petrin (2003)), a brief sketch of the procedure is provided below.”
Econometric Tools for Analyzing Market Outcomes (2007, background): “Levinsohn and Petrin (2003) (henceforth LP) suggest an alternative estimation routine whose primary motivation is to eliminate this efficiency loss.”
The Environmental Performance of Firms: The Role of Foreign Ownership, Training, and Experience (2008, methodology): “13 We calculate TFP using the procedure suggested by Levinsohn and Petrin (2003), see Appendix 2 for further details.”
What's Driving the New Economy?: The Benefits of Workplace Innovation (2003, positive): “…in this panel data on workplace practices and technology, we can reduce the classic simultaneity problem that has been highlighted in the context of estimating production functions by a variety of authors, including recently Levinsohn and Petrin (2000), by estimating a fixed effects model.”
Openness to Trade and Industry Cost Dispersion: Evidence from a Panel of Italian Firms (2008, positive): “We start with removing the transmission bias following the procedure suggested by Levinsohn and Petrin (2003) in the absence of the omitted price bias (henceforth LP).”