PEPP Seminar: Identification and Estimation of Production Function under Unobserved Heterogeneity (July 10)
2017/07/03
Title: Identification and Estimation of Production Function under Unobserved Heterogeneity
Presenter: Dr. Hiroyuki Kasahara, Associate Professor, Vancouver School of Economics, The University of British Columbia, Canada
Date: Monday, June 10, 2017
Time: 16:30-18:00
Venue: 3K Building, Room 311 (Central Area)
Coordinator: Prof. Hisahiro Naito
Abstract: We examine non-parametric identifiability of production function when production functions are heterogenous across firms beyond Hicks-neutral technology terms. Using a finite mixture specification to capture unobserved heterogeneity in production technology, we shows that production function for each unobserved type is non-parametrically identified under regularity conditions. We estimate a random coefficients production function using the panel data of Japanese manufacturing firms. Our estimates for random coefficients production function suggest that there exists substantial heterogeneity in production function coefficients beyond Hicks neutral term across firms within narrowly defined industry.
