Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192096 
Year of Publication: 
1994
Series/Report no.: 
Discussion Papers No. 112
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
We examine estimation of a model of producer behavior in the presence of correlated measurement errors in the regressors. Scale economies and price-cost margins are estimated from a set of panel data for manufacturing plants. The paper presents a somewhat new model for estimation of these parameters which is highly flexible but with a simple regression structure. Perhaps the most important contribution of the paper is some new results on deriving parameter bounds for a regression model with errors in variables. In particular, we consider the case where the measurement errors might be correlated. We derive asymptotic standard errors for the parameter bounds. These asymptotic standard errors are compared to bootstrap estimates. Our new results on parameter bounds are applied to the estimation of the model of producer behavior.
Subjects: 
Estimation
errors-in-variables
parameter bounds
imperfect competition
scale economies.
JEL: 
C13
C29
C43
Document Type: 
Working Paper
Document Version: 
Digitized Version

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