Article ID Journal Published Year Pages File Type
5062047 Economics Letters 2008 4 Pages PDF
Abstract

The use of industry indices to deflate nominal revenues and expenditure in intermediary inputs has been found to lead to lower scale estimates of the production function. This paper proposes a new approach to solve the estimation biases due to the use of industry deflators which relies on the use of the firms' labour cost.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Price deflators and the estimation of the production function
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