The key contribution of this paper is to show how to incorporate more information into the empirical strategy in order to avoid the need of valid instruments, which are difficult to find in many instances. I use information on price elasticity to propose a methodology that is able to determine...

Markups, returns to scale and productivity can be uncovered from regressing output on inputs. However, econometric identification of theses parameters may be problematic due the simultaneity problem. A common solution is the IV method. However, usual instruments are only weakly correlated to the...

This paper develops a methodology to uncover consumer preferences from a discrete-choice demand model of product differentiation using plant-level data. When prices and quantities are observed, the appropriate strategy for estimating such model is well developed. However, most plant-level data...