Considering the observed patterns of R&D investment, we argue that a model which allows for a positive feedback from already acquired knowledge to the productiveness of current research, fits the empirical evidence better than the standard model that treats knowledge accumulation symmetrically...

This paper investigates the relationship between a firm's investment decision and its financial situation. We present a model of investment, where the cost of external finance is increasing in the debt ratio. The model is estimated using a panel of Norwegian manufacturing establishments for the...

We examine estimation of a model of producer behavior in the presence of correlated measurement errors in the regressors. Scale economies and price-cost margins are estimated from a set of panel data for manufacturing plants. The paper presents a somewhat new model for estimation of these...

Some well-known correlations between R&D and performance are given a somewhat new interpretation in this paper. I present an alternative model of knowledge accumulation, with some interesting and desirable properties. Perhaps the most attractive property is that it provides a simple and less...

This paper examines panel data modelling with latent variables in analyzing log-linear relations between inputs and output of firms. Our particular focus is on (i) the "increasing returns to scale puzzle" for labour input and (ii) the GMM estimation in the context of errors-in-variables and...

This paper explores the inconsistency of common scale estimators when output is proxied by deflated sales, based on a common output deflator across firms. The problems arise when firms operate in an imperfectly competitive environment and prices differ between firms. In particular, we show that...