Memorandum,
Oslo University, Department of Economics

Abstract: This paper presents a somewhat new econometric framework that permits simultaneous estimation of price-cost margins, scale economies and productivity from a panel of establishment data. The econometric model contains only a few, economically interesting parameters to be estimated, but it is nevertheless consistent with a flexible (translog) underlying technology, quasi-fixed capital and the presence of persistent differences in productivity between establishments.

Keywords: ECONOMIES OF SCALE; PRODUCTIVITY

JEL-codes: D40; C23

27 pages, 1998

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