Products and productivity
By: Andrew B. Bernard, Stephen Redding, Peter K. Schott.
Contributors: Redding, Stephen.; Schott, Peter K.
Series: Discussion paper ;; no. 699; Discussion paper (London School of Economics and Political Science. Centre for Economic Performance : Online) ;; no. 699.
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2005
Place of publication: [London]
Language: eng
Format: Electronic resource
Description: "Firms' decisions about which goods to produce are often made at a more disaggregate level than the data observed by empirical researchers. When products differ according to production technique or the way in which they enter demand, this data aggregation problem introduces a bias into standard measures of firm productivity. We develop a theoretical model of heterogeneous firms endogenously self-selecting into heterogeneous products. We characterize the bias introduced by unobserved variation in product mix across firms, and the implications of this bias for identifying firm and industry responses to exogenous policy shocks such as deregulation. More generally, we demonstrate that product switching gives rise to a richer set of industry-level dynamics than models where firm product mix remains fixed"--London School of Economics web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 7/25/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.