Identification Properties for Estimating the Impact of Regulation on Markups and Productivity

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Sampi Bravo,James Robert Ezequiel, Jooste, Charl, Vostroknutova, Ekaterina
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2021
• Subjects: Production functions; Productivity

This paper addresses several shortcomings in the productivity and markup estimation literature. Using Monte-Carlo simulations, the analysis shows that the methods in Ackerberg, Caves and Frazer (2015) and De Loecker and Warzynski (2012) produce biased estimates of the impact of policy variables on m...