Prices, Profits, Proxies, and Production

  title={Prices, Profits, Proxies, and Production},
  author={Victor H. Aguiar and Nail Kashaev and Roy Evan Allen},
  booktitle={SSRN Electronic Journal},
This paper studies nonparametric identification and counterfactual bounds for heterogeneous firms that can be ranked in terms of productivity. Our approach works when quantities and prices are latent rendering standard approaches inapplicable. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or price proxies of flexibly chosen variables. We extend classical duality results for price-taking firms to a setup with discrete… 

Dynamic and Stochastic Rational Behavior

We analyze consumer demand behavior using Dynamic Random Utility Model (DRUM). Under DRUM, a consumer draws a utility function from a stochastic utility process in each period and maximizes this



The Nonparametric Approach to Production Analysis

hA(p) = p∗′y∗

  • 2007

Hospital Cost Function in a Non-Market Health Care System

It is suggested that Qubec hospitals, which operate in a non-market environment, might not behave fundamentally differently from their U.S. counterparts and properties of the non- market hospitals' cost functions are compatible with short-term, but not long- term, cost-minimizing behavior.

R & d and productivity.

Specification and estimation of Cobb-Douglas production function models

In this paper we consider the specification and estimation of the Cobb-Douglas production function model. After reviewing the "traditional" specifying assumptions for the model which are based on

Illustrative Empirical Application In this section, we analyze the production of houses using data from Epple et al. (2010) in line with the model described in Section 3.1

  • πe ≤ πe+1,
  • 2010

depth,” Probability Theory and Related Fields

  • 2019

Prices, Markups and Trade Reform

This paper examines how prices, markups and marginal costs respond to trade liberalizaƟon. We develop a framework to esƟmate markups from producƟon data with mulƟ-product firms. This approach does

Estimating the number of components in finite mixture models via the Group-Sort-Fuse procedure

This work proposes the Group-Sort-Fuse procedure---a new penalized likelihood approach for simultaneous estimation of the order and mixing measure in multidimensional finite mixture models and shows that the GSF is consistent in estimating the true mixture order and achieves the convergence rate for parameter estimation up to polylogarithmic factors.

Identification of Hedonic Equilibrium and Nonseparable Simultaneous Equations

This paper derives conditions under which preferences and technology are nonparametrically identified in hedonic equilibrium models. With products differentiated along a quality index and agents