At the firm level, revenue and costs are well measured but prices and quantities are not. This paper shows that because of these data limitations estimates of returns to scale at the firm level are for the revenue function, not production function. Given this observation, the paper argues that,...

We show that dependence of production on foreign inputs (or non-producible natural resources) can significantly increase the likelihood of indeterminacy. Payment of imported foreign factors of production may act as a semi-fixed cost, amplifying production externalities and returns to scale,...

We present a dynamic model of factor demands based on expected discounted costs min-imization. While making only very mild assumptions on expectations and technology, we are able to establish a duality relationship between contemporary factor demands and the technology, and we provide formula...

We present a dynamic model of factor demands based on a contemporary cost function and a dynamic version of Shepard's lemma. While making only very mild assumptions on expectations and technology, we are able to present a complete characterization of the factor demand system and the contemporary...

Nous présentons un modèle dynamique de demande de facteurs de production basé sur un comportement de minimisation de l'espérance des coûts cumulatifs actualisés. Sous des hypothèses peu restrictives sur les anticipations et la technologie, nous établissons une relation de dualité entre...

This paper considers a partial equilibrium model of conflict where two asymmetric, rational and risk-neutral opponents evaluate differently the contested stake. Differently from common contest models, agents have the option of choosing a second instrument to affect the outcome of the conflict....

Replaced with revised version of paper 11/18/10.

In the standard framework of data envelopment analysis (DEA) models, the returns to scale are fully characterized using the multiplier on the convexity constraint of inefficient decision making units (DMU) using the projection of the input–output vector on the frontier. In this note, we...

In this paper, I extend the Olley-Pakes (1996) estimation method to the CES production function with biased technical change. The new semi-parametric approach allows consistent estimation of the degree of returns to scale, the elasticity of substitution, and the bias in technical change....