Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192218 
Year of Publication: 
1998
Series/Report no.: 
Discussion Papers No. 235
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
A framework for analyzing substitution and scale properties, and technical change from plant-level panel data is presented. Focus is on comparing the constant and random coefficient specification of the substitution and scale parameters and investigating the potential variation of the parameters across firms. Characteristics of the model framework are (i) an equation system consisting of a three-factor translog cost function and the corresponding cost-share equations, (ii) random firm specific heterogeneity in coefficients, and (iii) a Maximum Likelihood procedure allowing for unbalanced panel data. The empirical results, based on data from Norwegian chemical plants, indicate substantial firm specific heterogeneity in substitution and scale properties.
Subjects: 
Panel Data. Random Coefficients. Unbalanced Data. Heterogeneity. Production technology
JEL: 
C33
D21
D24
L65
Document Type: 
Working Paper

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