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Chapter 3 production and cost function estimation 3 1 Motivations Estimating production and cost functions of producers is the cornerstone of economic analysis Estimating the functions includes to separate the contribution of observed inputs and the other factors which is often referred to as the productivity What determines productivity Syverson 2011 type research questions naturally follow
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Estimation of production functions aguirregabiria Estimation of Production Functions 1 Introduction The estimation of rmscost functions in Empirical IO plays an important role in any empirical study of industry competition As explained in chapter 1 data on production costs at the level of individual rm market product is very rare and for this reason costs
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