We evaluate the determinants of matching efficiency changes through a stochastic Cobb-Douglas production frontier model extended to allow the efficiency coefficient to depend on variables meant to capture workers and firms characteristics. We apply this methodology to examine regional...

The purpose of this paper is to evaluate the efficiency of the East German economy at the firm level using an unbalanced panel over the transition period 1994 to 1998. We adopt a translog stochastic frontier model to estimate technical efficiency in eastern and western Germany. The results...

Output and input market distortions manifest as wedges in the firm's first order conditions. The production approach to markup estimation recovers the markup wedge using the output elasticity for a variable and undistorted input. We show that using the revenue elasticity for any variable input,...

When factors enter into joint-production, they typically develop a degree of specificity with respect to each other. It is well known that, when combined with contracting difficulties, specificity gives rise to a Williamsonian 'Fundamental Transformation' from an ex-ante competitive relationship...

This paper develops a new method for estimating production-function parameters that can be applied in differentiated-product industries with endogenous quality and variety choice. We take advantage of data on physical quantities of outputs and inputs from the Colombian manufacturing survey,...

COVID-19 leads to a substantial decrease in the Chinese economy in early 2020. More importantly, the economy's recovery is not immediate; even new COVID-19 cases drop (close) to zero for a few months. I develop a nonseparable production function model to show productivity channel is a resolution...

Commonly used methods of production function and markup estimation assume that a firm’s output quantity can be observed as data, but typical datasets contain only revenue, not output quantity. We examine the nonparametric identification of production function and markup from revenue data when...