Fixed-Effect Estimation of Highly-Mobile Production Technologies
William C. Horrace
Syracuse University - Department of Economics; National Bureau of Economic Research (NBER)
Kurt E. Schnier
University of Rhode Island - Department of Environmental and Natural Resource Economics
April 1, 2008
Center for Policy Research Working Paper No. 87
We consider fixed-effect estimation of a production function where inputs and outputs vary over time, space, and cross-sectional unit. Variability in the spatial dimension allows for time-varying individual effects, without parametric assumptions on the effects. Asymptotics along the spatial dimension provide consistency and normality of the marginal products. A finite-sample example is provided: a production function for bottom-trawler fishing vessels in the flatfish fisheries of the Bering Sea. We find significant spatial variability of output (catch) which we exploit in estimation of a harvesting function.
Number of Pages in PDF File: 34
Keywords: Panel data, time-varying individual effect, spatial econometrics, fisheries, agriculture, heteroskedasticity
JEL Classification: C23, D24, N50working papers series
Date posted: April 20, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.562 seconds