Title of article
Is risingRTSafigmentofpoordata
Author/Authors
StenHansen، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
12
From page
378
To page
389
Abstract
While usingdetailedfirm-leveldatafromtheprivatebusinesssector,thisstudy
identifiestwoempiricalpuzzles:(i)returns-to-scale(RTS)parameterestimatesriseat
higherlevelsofdataaggregationand(ii)estimatesfromthefirmlevelsuggest
decreasingreturnstoscale.Theanalysisshowsthat,althoughconsistentwithrising
estimates,neitherentry/exitnortheBasu–Fernald[ReturnstoscaleinU.S.production:
estimatesandimplications.JournalofPoliticalEconomy105,249–283)aggregation-
bias effectdrivesthisresult.Rather,risingandtoolowRTSestimatesseemtoreflecta
mixtureofrandomerrorsinfactorinputsatthefirmlevel.Itturnsout,infact,thata
7.5–10percenterrorinlabor(hoursworked)canexplainbothpuzzles.
Keywords
Data aggregationExternal economiesFirm-level dataMonte CarlosimulationRandom errorsReturnstoscale
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846300
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