Olley-Pakes productivity decomposition: computation and inference

Decoupling Policy Effect and Irish Dairy Farms Productivity Estimation Using Olley/Pakes

The recent Common Agricultural Policy (CAP) reform of the financial support mechanism for farms was introduced in 2005. According to this reform, the level of support that each farm receives is paid regardless of the current level of production. The decoupling of direct payments is expected to change production decisions, as farmers will change their mainly subsidy revenue maximization objectiv...

Olley and Pakes-style production function estimators with firm fixed effects

We show that control function estimators (CFEs) of the firm production function, such as Olley-Pakes, may be biased when productivity evolves with a firmspecific drift, in which case the correctly specified control function will contain a firm-specific term, omitted in the standard CFEs. We develop an estimator that is free from this bias by introducing firm fixed effects in the control functio...

Normalized Equation and Decomposition Analysis: Computation and Inference

Normalized Equation and Decomposition Analysis: Computation and Inference This paper joins discussions on normalized regression and decomposition equations in devising a simple and general algorithm for obtaining the normalized regression and applying it to the Oaxaca decomposition. This resolves the invariance problem in the detailed Oaxaca decomposition. An algorithm to calculate an asymptoti...

Reforms and Productivity Dynamics in Chinese State-Owned Enterprises

Reforms and Productivity Dynamics in Chinese State-Owned Enterprises Institutional change has taken place gradually since 1978 for State-Owned Enterprises (SOEs) in the Industrial Sector of China. In this paper we estimate the effect of deep reform (the right to hire and fire labour, buy and sell capital and operate on international markets) on the productivity dynamics of enterprises. Using a ...

Productivity and priming: Morphemic decomposition in Arabic