Levinsohn, James; Petrin, Amil - In: Review of Economic Studies 70 (2003) 2, pp. 317-341
We add to the methods for conditioning out serially correlated unobserved shocks to the production technology. We build on ideas first developed in Olley and Pakes (1996). They show how to use investment to control for correlation between input levels and the unobserved firm-specific...
