Slutsky Meets Marschak: The First-Order Identification of Multi-Product Production

43 Pages Posted: 29 Dec 2009

See all articles by E. Glen Weyl

E. Glen Weyl

Microsoft Research New York City; RadicalxChange Foundation

Date Written: December 28, 2009

Abstract

Marschak (1953) suggested that applied research should begin by determining the minimal set of assumptions and data needed to make a prediction of interest. Standard identification analyses correspond poorly to this search, as they have either stringent data (local average treatment effects/IV and non-parametric) or structure (parametric) requirements. Yet, in this spirit, much empirical (Chetty 2009) and some theoretical work has asked which effects of policy interventions may be forecast from the local observable levels and derivatives of the structure. I formalize this inquiry as the {\em first-order} identification problem and illustrate it with the case of multi-product production. Under perfect competition or monopoly, but not standard oligopoly, Slutsky conditions for firm optimization provide strategies for identifying, for example, the effects of price controls. They also test for consistency of conjectural variations.

Suggested Citation

Weyl, Eric Glen, Slutsky Meets Marschak: The First-Order Identification of Multi-Product Production (December 28, 2009). Available at SSRN: https://ssrn.com/abstract=1529110 or http://dx.doi.org/10.2139/ssrn.1529110

Eric Glen Weyl (Contact Author)

Microsoft Research New York City ( email )

641 Avenue of the Americas
7th Floor
New York, NY 10011
United States
8579984513 (Phone)

HOME PAGE: http://www.glenweyl.com

RadicalxChange Foundation ( email )

HOME PAGE: http://www.radicalxchange.org

Register to save articles to
your library

Register

Paper statistics

Downloads
153
Abstract Views
935
rank
192,200
PlumX Metrics