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A note on testing for complementarity and substitutability in the case of multiple practices

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  • Martin Carree
  • Boris Lokshin
  • René Belderbos

Abstract

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.
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Suggested Citation

  • Martin Carree & Boris Lokshin & René Belderbos, 2011. "A note on testing for complementarity and substitutability in the case of multiple practices," Journal of Productivity Analysis, Springer, vol. 35(3), pages 263-269, June.
    • Handle: RePEc:kap:jproda:v:35:y:2011:i:3:p:263-269
    DOI: 10.1007/s11123-010-0189-8
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    More about this item

    Keywords

    Complementarity; Supermodularity; Firm performance; C12; D24;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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