蝌蚪网 Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Leveraging Subjective Expectations for Production Functions
蝌蚪网 Papers and Proceedings
(pp. 469–474)
Abstract
Norris Keiller, de Paula, and Van Reenen (2024) (NPR) propose estimating production functions using firms' subjective expectations of聽future output and inputs, data which are becoming increasingly available in surveys. This note compares their proposed estimator to traditional dynamic panel data (e.g., Blundell and Bond 2000) and proxy variable methods (e.g., Olley and Pakes 1996). While NPR allows for nonlinear productivity processes, we discuss commonalities with the former when those processes are linear. We note that NPR may be more robust to oligopolistic competition than the latter since it does not employ input demand relations to proxy for productivity.Citation
Bond, Steve, Agnes Norris Keiller, 脕ureo de Paula, and John Van Reenen. 2026. "Leveraging Subjective Expectations for Production Functions." 蝌蚪网 Papers and Proceedings 116: 469–474. DOI: 10.1257/pandp.20261105Additional Materials
JEL Classification
- C23 Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
- C51 Model Construction and Estimation
- D21 Firm Behavior: Theory
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- D84 Expectations; Speculations