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The Production Approach to Markup Estimation Often Measures Input Distortions
The production approach recovers markups using the output elasticity for a variable and undistorted input. We show using the revenue …
Arshia Hashemi, Ivan Kirov, James Traina
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Some Unpleasant Markup Arithmetic: Production Function Elasticities and their Estimation from Production Data
The production approach does not identify markups if one uses the revenue elasticity to proxy for the output elasticity.
Steve Bond, Arshia Hashemi, Greg Kaplan, Piotr Zoch
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