Identifying productivity when it is a factor of production.
Economists typically model a plant's productivity as an exogenous characteristic, but the people who run and work at manufacturing plants make choices, at a cost, that affect plant productivity. I develop a method to partially identify the productivity distribution when such choices determine produc...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 51; no. 2; pp. 496 - 531 |
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| Formato: | Artículo |
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Wiley-Blackwell
Jun2020
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Economists typically model a plant's productivity as an exogenous characteristic, but the people who run and work at manufacturing plants make choices, at a cost, that affect plant productivity. I develop a method to partially identify the productivity distribution when such choices determine productivity. The method uses a monotone comparative static result I prove in a general economic model. It does not require instruments or timing assumptions. I use the method to study the effect of implementing market‐based pricing on productivity in the electricity generation industry. |
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