Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270408 
Year of Publication: 
2022
Series/Report no.: 
Research Report No. 2022-6
Publisher: 
The University of Western Ontario, Department of Economics, London (Ontario)
Abstract: 
This paper studies nonparametric identification and counterfactual bounds for heterogeneous firms that can be ranked in terms of productivity. Our approach works when quantities and prices are latent, rendering standard approaches inapplicable. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or price proxies of flexibly chosen variables. We extend classical duality results for price-taking firms to a setup with discrete heterogeneity, endogeneity, and limited variation in possibly latent prices. Finally, we show that convergence results for nonparametric estimators may be directly converted to convergence results for production sets.
Subjects: 
Counterfactual bounds
cost minimization
nonseparable heterogeneity
partial identification
profit maximization
production set
revenue maximization
shape restrictions
JEL: 
C5
D24
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.