A Classifier-Lasso Approach for Estimating Production Functions with Latent Group Structures

• Tác giả: Daniel Czarnowske
• Ngôn ngữ: eng
• Ký hiệu phân loại: 511.4 Approximations formerly also 513.24 and expansions
• Thông tin xuất bản: 2022
• Bộ sưu tập: Metadata
• ID: 194614

Tóm tắt

Comment: 22 pages, 2 figuresI present a new estimation procedure for production functions with latent group structures. I consider production functions that are heterogeneous across groups but time-homogeneous within groups, and where the group membership of the firms is unknown. My estimation procedure is fully data-driven and embeds recent identification strategies from the production function literature into the classifier-Lasso. Simulation experiments demonstrate that firms are assigned to their correct latent group with probability close to one. I apply my estimation procedure to a panel of Chilean firms and find sizable differences in the estimates compared to the standard approach of classification by industry.