Using panel data for Norwegian manufacturing, we revisit 'the increasing returns to scale puzzle' for labour inputs. We consider the response of the input of white-collar workers, blue-collar workers, and blue-collar worker hours to permanent changes in output. Permanent and temporary changes in...

This paper deals with the (asymptotic) bias in the estimation of regression slope coefficients from panel data observed with error. Unobserved individual and time specific heterogeneity is also assumed. The estimators considered include: the standard "within" and "between" estimators, and...