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This paper investigates the sources of total factor productivity growth in the German manufacturing sector, 1981 …-1998. Decomposition formulae for aggregate productivity growth are used to identify the effects of structural change and entry-exit on … aggregate productivity growth. Documented is a substantial rise of productivity growth after the German reunification. The bulk …
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Scale characteristics are key properties of production functions that determine optimal firm sizes, and have considerable policy implications for sectors undergoing restructuring. However, estimates of scale characteristics typically vary with the assumptions of the underlying empirical model....
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We present a new method for imposing and testing concavity of a cost function using asymptotic least squares, which can easily be implemented even for cost functions which are nonlinear in parameters. We provide an illustration on the basis of a (generalized) Box-Cox cost function with six...
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