This study provides a guideline for dealing with endogenous inputs and environmental variables in Battese and Coelli's (1995) stochastic frontier model, which has been used in a vast number of empirical studies. The presence of endogenous variables in Battese and Coelli's model leads to...

Freemium products must attract a disproportionately large user base to capture value, but they are often “hit or miss”. Which freemium products are best positioned to becoming a killer app, and under what conditions? Drawing on freemium's distinguishing features of low adoption barriers and...

Under the production approach to markup estimation, any flexible input should recover the markup. I test this implication using four manufacturing censuses and store-level data from a US retailer, and overwhelmingly reject that markups estimated using labor and materials have the same...

Most empirical studies seeking to estimate firm-level production technologies via proxy variable estimators focus on single-output production functions despite that, in practice, the majority of firms produce multiple outputs. Arguably, the primary reason for vast popularity of a single-product...

The Cobb-Douglas production function (the C-D function) is believed to have successfully validated and consolidated the marginal productivity theory of income distribution (MPTID) and the aggregate production function (APF). However, this paper discovers that this success is an illusion. It...

I investigate the causes of the high inflation Argentina experienced from 2007 to 2015. To do so, I estimate the potential output and the output gap using the Blanchard-Quah decomposition for this country and compare it to the estimations I obtained for other economies in the region were...

This paper considers the maximum likelihood estimation of a stochastic frontier production function with an interval outcome. We derive an analytical formula for calculating the likelihood function of the interval stochastic frontier models. Monte Carlo experiments reveal that the finite sample...

We provide a nonparametric revealed preference approach to demand analysis based on homothetic efficiency. Homotheticity is a useful restriction but data rarely satisfies testable conditions. To overcome this we provide a way to estimate homothetic efficiency of consumption choices. It...

We examine how one industry's productivity is affected by the IT capital of its customers and how this effect depends on industries' relative concentration. These customer-driven IT spillovers result from customers' IT investments in various information systems that reduce transaction costs...

Purpose: To specify a Variable Elasticity of Substitution function (VES), in which the estimated Elasticity of Substitution (ES) can give some implications for the tendency of economic growth in the Vietnames manufacturing sector.Design/Methodology/Approach: The contribution and the relevant...