Identifying productivity when it is a factor of production

• 成果类型: Article
• 署名作者: Flynn, Zach
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12323
• 发表日期: 2020
• 页码: 496-530
• 关键词: trade liberalization; firm; inference; IMPACT; differentiation; variables; DYNAMICS; entry; EXIT

摘要

Economists typically model a plant's productivity as an exogenous characteristic, but the people who run and work at manufacturing plants make choices, at a cost, that affect plant productivity. I develop a method to partially identify the productivity distribution when such choices determine productivity. The method uses a monotone comparative static result I prove in a general economic model. It does not require instruments or timing assumptions. I use the method to study the effect of implementing market-based pricing on productivity in the electricity generation industry.