Na quarta-feira, dia 8 de outubro, entre as 13h00 e as 14h00, tem lugar mais uma sessão dos ISEG Research Seminars, com Ulrich Doraszelski (Universidade da Pensilvânia), que irá apresentar o paper “Production Function Estimation without Invertibility: Imperfectly Competitive Environments and Demand“.
Os Seminários ISEG Research decorrem semanalmente, às quartas-feiras, no Anfiteatro 4 do Edifício Quelhas (4.º piso), contando com a participação de docentes do ISEG, bem como de outras instituições de ensino nacionais e internacionais.
Entrada livre.
Abstract
We advance the proxy variable approach to production function estimation. We show that the invertibility assumption at its heart is testable. We characterize what goes wrong if invertibility fails and what can still be done. We show that rethinking how the estimation procedure is implemented either eliminates or mitigates the bias that arises if invertibility fails. In particular, a simple change to the first step of the estimation procedure provides a first-order bias correction for the GMM estimator in the second step. Furthermore, a modification of the moment condition in the second step ensures Neyman orthogonality and enhances efficiency and robustness by rendering the asymptotic distribution of the GMM estimator invariant to estimation noise from the first step.