Production capital and technology, fundamental to understanding output and productivity growth, are unobserved except at disaggregated levels and must be estimated prior to being used in empirical analysis. We develop and apply a new estimation method, based on advances in economics, statistics,...

In order to assess the productivity effects of information and communication technologies (ICT), regressions based on cross?sectional firm?level data may yield unreliable results for the commonly employed production function framework. In this paper, various estimation biases and econometric...

In order to assess the productivity effects of information and communication technologies (ICT), regressions based on cross-sectional firm-level data may yield unreliable results for the commonly employed production function framework. In this paper, various estimation biases and econometric...

Innovation is widely considered as the main determinant of long-term economic growth. Despite this consensus, it is arduous to measure its economic effect at the firm and aggregate level. The objective of the present paper is to propose a critical examination of innovation indicators and...

We review the econometric literature on measuring the returns to R&D. The theoretical frameworks that have been used are outlined, followed by an extensive discussion of measurement and econometric issues that arise when estimating the models. We then provide a series of tables summarizing the...

Many analyses of firm performance are based upon self-reported measures. However, not only are these likely to be more subject to general reporting error than alternative official sources, but also measures of relative performance may be subject to the biases observed in the psychology...

Surveys of bank efficiency intrinsically draw conclusions based on the assumption that all banks in a sample use the same production technology. Neglecting the existence of unobserved differences in technological regimes might distort efficiency estimates by assigning incorrectly these...

We review the econometric literature on measuring the returns to R&D. The theoretical frameworks that have been used are outlined, followed by an extensive discussion of measurement and econometric issues that arise when estimating the models. We then provide a series of tables summarizing the...

In this article we propose a new methodology for computing the aggregate productivity of an industry, its variations and decompositions of the latter into changes of individual productivities (within effect) and changes in industry composition (between effect). Current aggregate measures rely on...

Firm growth is an essential feature of market economies, shaping together macroeconomic performance and the evolution of industry structures. As a potential indicator of organizational "fitness" within a competitive environment, firm growth is also a central concern to both the practice and...