revenueCES: Two-step estimation of revenue CES

In Davidvandijcke/revenueCES: CES Revenue Production Function Estimation

Two-step estimation of revenue CES

Description

revenueCES takes production function inputs and revenue as arguments and estimates a CES production function with labor-augmenting productivity up to a returns-to-scale parameter, assuming only cost minimization, as in \insertCitevandijcke2022;textualrevenueCES.

Usage

revenueCES(
  Y,
  X,
  V,
  P_V,
  idvar,
  timevar,
  v_bounds = FALSE,
  v = NULL,
  mu = NULL,
  boot = 100,
  opt = "optim",
  theta_0 = NULL,
  cluster = NULL,
  control = NULL
)

Arguments

Y	A vector of firms' revenue over time.
X	A vector of state / dynamic inputs (e.g. capital).
V	A vector of variable inputs (e.g. material inputs).
P_V	A vector of firm- or industry-level input prices, ranked in the same way as the corresponding inputs in V.
idvar	A vector indexing which firm each row of the vectors corresponds to.
timevar	A vector indexing which time period each row of the vectors corresponds to
v_bounds	A Boolean indicating whether bounds on the returns-to-scale parameter v should be computed. Default = FALSE.
v	An optional number in ]0,∞[ to which the returns-to-scale parameter should be restricted. Constant returns to scale correspond to v = 1. Default = NULL.
mu	A Boolean whether firm-level markups (with error term) should be computed and reported. Requires that v is specified. Default = FALSE.
boot	Number of bootstrap repetitions for calculating standard errors. Default = 100.
opt	A string with the optimization algorithm to be used during the GMM estimation. Options are optim, solnp and DEoptim. Default = 'optim'.
theta_0	An optional named vector of starting values for the parameters, where the names are 'beta_L', 'beta_M', 'sigma'. Default = NULL.
cluster	An optional object of class "SOKcluster" or "cluster" for parallelization of the bootstrap. See makeCluster. Default = NULL.
control	A list of arguments to be passed to the optimization algorithm. See the links for the optim parameter above. Default = NULL.

Details

Try and write

Value

A member of the S3 class revenueEst, containing the following elements:

Estimates, a list with elements,

theta	A vector with estimated parameters.
theta.se	A vector with standard errors of the estimated parameters.
omegal	A vector of firm-level labor-augmenting productivity terms, one for each firm in each period except the first.
v_bounds	A vector with the estimated upper and lower bound on the returns to scale, if specified.
alpha	A vector with estimated output elasticities, if a returns-to-scale restriction was specified.
mu	A vector with estimated markups (with error term), if requested and a returns-to-scale restriction was specified.

Model, a list with elements,

theta0	Numeric object with the optimization starting points.
thetaFS	Numeric object with the first-step parameters.
boot.repetitions	The number of bootstrap repetitions used for computation of the standard errors.
elapsed.time	Time elapsed during the estimation.
opt	String with the optimization routine used.
opt.outcome	Optimization outcome.

Data, a list with elements,

Y	A vector of firms' revenue over time.
X	A vector of state / dynamic inputs (e.g. capital).
V	A vector of variable inputs (e.g. material inputs).
P_V	A vector of firm- or industry-level input prices.
idvar	A vector indexing which firm each row of the vectors corresponds to.
timevar	A vector indexing which time period each row of the vectors corresponds to.

References

\insertRef

vandijcke2022revenueCES

Examples

Example

Davidvandijcke/revenueCES documentation built on April 27, 2022, 3:25 a.m.