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Estimation of a Supply Function

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  • Merino Troncoso, Carlos

Abstract

In this chapter I provide a brief introduction of the production and supply function. The theoretical neoclassical model, has limited capacity to explain data. Recent structural econometric techniques provide better estimation results and are able to explain entry, exit and investment decisions of firms.

Suggested Citation

  • Merino Troncoso, Carlos, 2021. "Estimation of a Supply Function," MPRA Paper 106991, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106991
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    References listed on IDEAS

    as
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    7. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    8. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    9. Baumol, William J & Bailey, Elizabeth E & Willig, Robert D, 1977. "Weak Invisible Hand Theorems on the Sustainability of Multiproduct Natural Monopoly," American Economic Review, American Economic Association, vol. 67(3), pages 350-365, June.
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    More about this item

    Keywords

    Production function; productivity; returns of scale; subadditivity; efficiency;
    All these keywords.

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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