Estimating Gross Output Production Functions

Markus Trunschke, Kenneth L. Judd

This paper develops a novel method to estimate production functions. Earlier papers rely on special assumptions about the functional form of production functions. Our approach efficiently estimates all parameters of any production functions with Hicks-neutral productivity without additional exogenous variables or sources of variation in flexible input demand. We provide Monte Carlo Simulation evidence of our method's performance and test our approach on empirical data from Chilean and Colombian manufacturing industries

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Year of publication:	November 2024
Authors:	Trunschke, Markus ; Judd, Kenneth L.
Institutions:	National Bureau of Economic Research (issuing body)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Produktionsfunktion \| Production function \| Schätzung \| Estimation \| Monte-Carlo-Simulation \| Monte Carlo simulation \| Industrie \| Manufacturing industries \| Kolumbien \| Colombia \| Chile \| 1997-1996