2 papers
econ.EM2025
A Generalized Control Function Approach to Production Function Estimation
Ulrich Doraszelski, Lixiong Li
We develop a generalized control function approach to production function estimation. Our approach accommodates settings in which productivity evolves jointly with other unobservab…
econ.EM2025
Production Function Estimation without Invertibility: Imperfectly Competitive Environments and Demand Shocks
Ulrich Doraszelski, Lixiong Li
We advance the proxy variable approach to production function estimation. We show that the invertibility assumption at its heart is testable. We characterize what goes wrong if inv…