Estimating the Production Function Under Input Market Frictions
检验了生产函数估计中关于中间投入选择的关键假设，发现该假设在多个行业不成立，并提出在假设不成立时使用简化动态面板估计量，以及选择估计量的标准。
Abstract Behind many production function estimators lies a crucial assumption that the firm's choice of intermediate inputs depends only on observed choices of other inputs and on unobserved productivity. This assumption fails when market frictions distort the firm's input choices. I derive a test for the assumption, which is rejected in several industries. Using weak identification asymptotics, I show that when the assumption fails, a simplified dynamic panel estimator can be used instead of choice-based methods because it requires choices to be distorted. I propose criteria for choosing between estimators, which in simulations yield lower error than either estimator alone.