A Note on Testing for Complementarity and Substitutability in the Case of Multiple Practices
Journal of Productivity Analysis, Vol. 35, No. 3, pp. 263-269, June 2011
Posted: 24 May 2011
Date Written: May 16, 2011
Recent empirical studies of firm-level performance have tested complementarity in the case of multiple practices. These papers have drawn conclusions using potentially biased estimates of pair-wise interaction effects. We develop a consistent and simple testing framework and test it against alternatives.
Keywords: Complementarity, supermodularity, firm performance
JEL Classification: C12, D24
Suggested Citation: Suggested Citation