A0984
Title: Production functions with multi-dimensional productivity in the presence of productivity spillovers
Authors: Zhezhi Hou - Southwestern University of Finance and Economics (China) [presenting]
Abstract: Many recent researchers in production economics believe technological growth can enhance the productivity of all factors of production equally, or they can exhibit bias toward specific factors. A novel methodology is provided on the estimation of labor augmenting and Hicks Neutral productivity of firms in the presence of productivity spillovers originating from two sources: The spatiotemporal spillovers in Hicks Neutral productivity and in their labor augmenting counterpart. The previous study is extended by allowing both productivity to follow a Markov process, which could be affected by cross-sectional dependence in multidimensional productivity induced by spillovers. An identification strategy is then developed based on a proxy variable method and first-order conditions.
