Based on a large panel of Czech manufacturing firms, we estimate firm-level production functions in 2003–2007 using the Levinsohn and Petrin (2003) and Wooldridge (2009) approaches, correcting for the measurement error in capital. We show that measurement error plays a significant role in the...

We empirically assess whether firms face economies and/or diseconomies of scale with respect to air pollution control by evaluating the effects of production on firmlevel air emission levels using a panel of Czech firms during the country’s transitional period of 1993 to 1998. By estimating a...

As it used to happen in the past years, CERGE-EI's annual summary was published in December 2001. Dr. Jan Hanousek, Director of CERGE-EI, and Dr. Lubomír Lízal, Deputy Director for Research were this year's editors. All articles were written by members of CERGE-EI faculty and researchers,...

The 2002 issue focuses on several long-term phenomena of political and economic development: the need for fiscal reform and our invitation to the European Union. Other aspects of long-term economic growth prospects are addressed as well, for example, the shadow economy, corruption and labor...

Using a large panel of Czech manufacturing firms with 50 or more employees, we update the firmlevel labour demand elasticity estimates for 2002–2009. The economic crisis of 2008–2009 provides a source of variation needed for getting estimates that cover not only times of growth, but also a...

Promoting competition among electricity producers is primarily targeted at ensuring low electricity prices for consumers. Producers could, however, withhold part of production facilities (i.e., apply a capacity cutting strategy) and thereby push more expensive production facilities to satisfy...

The paper analyzes investment behavior of industrial enterprises in the period immediately following price and foreign trade liberalization in the Czech Republic. It also focuses on the effect of soft macroeconomic environment on the microeconomic decisions. A dynamic investment function with...