levinsohn_petrin: Levinsohn-Petrin Estimation of Production Functions

In estprod: Estimation of Production Functions

Description

This function aims the estimation of production functions using Levinsohn-Petrin (2000).

Usage

levinsohn_petrin(
  data,
  formula = y ~ free | capital | proxy | controls,
  exit = NULL,
  gross = FALSE,
  id = "id",
  time = "year",
  bootstrap = TRUE,
  reps = 2,
  degree = c(3, 3),
  verify = TRUE,
  maxiter = 100,
  ...
)

Arguments

data	A data.frame or tibble containing the variables of the model.
formula	An object of the class formula.
exit	An optional formula with the name of the variabe indicator of firm's last period. ~exit, for example.
gross	If TRUE dependent variable is gross output.
id	A character with the name of the indicator variable.
time	A character with the name of the time variable.
bootstrap	An optional logical. If TRUE calculate bootstrap standard errors.
reps	The number of bootstrap replications.
degree	A vector with the number of polynomial interactions in each stage of the routine.
verify	Verify if inputs are sorted.
maxiter	Parameter of nls.lm at second stage.
...	Additional arguments.

Details

Multipart formula must be specified in the following order: y ~ free | capital | proxy | controls. Additional controls are optional. It is possible to use more than one variable, although the use of more than one capital may not be theoretically identified. The function returns an object of the estprod or boot classes (if bootstrap is TRUE).

Examples

data(estprod_data)
levinsohn_petrin(data = estprod_data, var1 ~ var2 | var3 | var4, 
exit = ~exit, id = "id", time = "year", bootstrap = TRUE)

Example output

Call
levinsohn_petrin(data = estprod_data, formula = var1 ~ var2 | 
    var3 | var4, exit = ~exit, id = "id", time = "year", bootstrap = TRUE)

Coefficients
      Estimate Std. Error z value  Pr(>|z|)    
var2 0.0145741  0.0062593  2.3284   0.01989 *  
var3 0.0619793  0.0133865  4.6300 3.657e-06 ***
---
Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1

estprod documentation built on July 20, 2020, 5:07 p.m.