Estimating Production Functions of Multiproduct Firms

• 成果类型: Article
• 署名作者: Valmari, Nelli
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdad005
• 发表日期: 2023
• 页码: 3315-3342
• 关键词: Reallocation; EFFICIENCY; indexes; prices; cost

摘要

Multiproduct firms constitute a considerable share of firms and account for an even greater share of production. Nevertheless, the vast majority of production function estimates are based on the assumption that firms are single-product manufacturers. This assumption is due to a lack of data on how firms allocate their inputs across their various product lines. I provide a strategy for estimating product-specific input allocations and production functions of multiproduct firms involved in monopolistic competition. The strategy is based on using firms' product prices and output demand in solving for product-level input allocations.