Parametric aggregation of heterogeneous micro production technologies is discussed. A four-factor Cobb-Douglas function with normally distributed firm specific coefficients and with log-normal inputs (which agrees well with the available data) is specified. Since, if the number of micro units is...

Systems of consumer expenditure functions are estimated from Norwegian household panel data. Total consumption expenditure is modeled as a latent variable, as indicators of it are purchase expenditures on different goods and two income measures. The usual assumption of no measurement error in...

A framework for analyzing substitution and scale properties from plant-level panel data is presented. Focus is on comparing the constant and random coefficient specification of the substitution and scale parameters and investigating the variation of the parameters across plants. Characteristics...