Nonparametric Identification and Estimation of Production Functions Invariant to Productivity Dynamics
不依赖生产率动态设定的生产函数非参数识别与估计
Production function estimates underpin the measurement of firm-level markups, allocative efficiency, and the productivity effects of policy interventions. Since Olley and Pakes (1996), every major proxy variable estimator has identified the production function through a first-order Markov assumption on unobserved productivity; I show that misspecification of this assumption generates persistent upward bias in the materials elasticity that propagates into overestimated…