Abstract
In this chapter, we discuss the estimation of production functions using panel data. Panel data sets include data for producing units which have been observed for several periods. Information about differences of production relations between units and of differences between time periods allows to drop some restrictive assumptions on parameter homogeneity which have to be employed in the cases of cross sectional or time series data. We discuss the pooled, the between, the within, and the random effects estimator for static models and hint for some problems when instrumenting in dynamic panel data models. The generation of data according to the different models and their estimation are demonstrated.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
An overview of dynamic panel data estimators provides Behr (2003).
References
Anderson T, Hsiao C (1981) Estimation of dynamic models with error components. J Am Stat Assoc 76:598–606
Arellano M, Bond S (1991) Some tests of specification for panel data: Monte carlo evidence and an application to employment equations. Rev Econ Stud 58:277–297
Baltagi BH (2013) Econometric analysis of panel data, 5th edn. Wiley, New York
Behr A (2003) A comparison of dynamic panel data estimators: Monte carlo evidence and an application to the investment function. Discussion paper of the Economic Research Centre of the Deutsche Bundesbank 03(5)
Croissant Y, Millo G (2008) Panel data econometrics in R: The plm package. J Stat Software 27(2), URL http://www.jstatsoft.org/v27/i02/
Greene WH (2011) Econometric analysis, 7th edn. Pearson Education, New Jersey
Griliches Z, Mairesse J (1995) Production functions: The search for identification. NBER Working Paper Series pp 169–203
Hsiao C (2003) Analysis of panel data. Cambridge University Press, Cambridge
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Behr, A. (2015). Production Functions with Panel Data. In: Production and Efficiency Analysis with R. Springer, Cham. https://doi.org/10.1007/978-3-319-20502-1_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-20502-1_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-20501-4
Online ISBN: 978-3-319-20502-1
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)