Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101364
Authors: 
Huang, Guofang
Hu, Yingyao
Year of Publication: 
2011
Series/Report no.: 
Working Papers, The Johns Hopkins University, Department of Economics 583
Abstract: 
This paper proposes a new semi-nonparametric maximum likelihood estimation method for estimating production functions. The method extends the literature on structural estimation of production functions, started by the seminal work of Olley and Pakes (1996), by relaxing the scalar-unobservable assumption about the proxy variables. The key additional assumption needed in the identification argument is the existence of two conditionally independent proxy variables. The assumption seems reasonable in many important cases. The new method is straightforward to apply, and a consistent estimate of the asymptotic covariance matrix of the structural parameters can be easily computed.
Document Type: 
Working Paper

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