Unveiling Plant-Product Productivity via First-Order Conditions: Robust Replication of Orr (2022)

Fuente: arXiv
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Auteurs principaux: Hong, Joonkyo, Luparello, Davide
Format: Preprint
Publié: 2025
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author Hong, Joonkyo
Luparello, Davide
author_facet Hong, Joonkyo
Luparello, Davide
contents We assess the replicability of Orr (2022)'s method for estimating within-plant productivity across product lines, which combines demand estimation with cost minimization. The original study uses input price shocks in other output markets as instrumental variables, with exclusion restrictions based on downstream purchase shares. Reconstructing the original dataset of Indian machinery producers from 2000-2007, we reproduce the main productivity patterns and demonstrate their robustness to variations in the exclusion threshold. The main results remain robust in extended samples (2010-2019, 2000-2019) when calibrating demand parameters to Orr (2022)'s 2000-2007 estimates, as estimation on these extended periods yields inadmissible demand systems.
format Preprint
id arxiv_https___arxiv_org_abs_2501_19354
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Unveiling Plant-Product Productivity via First-Order Conditions: Robust Replication of Orr (2022)
Hong, Joonkyo
Luparello, Davide
General Economics
Economics
We assess the replicability of Orr (2022)'s method for estimating within-plant productivity across product lines, which combines demand estimation with cost minimization. The original study uses input price shocks in other output markets as instrumental variables, with exclusion restrictions based on downstream purchase shares. Reconstructing the original dataset of Indian machinery producers from 2000-2007, we reproduce the main productivity patterns and demonstrate their robustness to variations in the exclusion threshold. The main results remain robust in extended samples (2010-2019, 2000-2019) when calibrating demand parameters to Orr (2022)'s 2000-2007 estimates, as estimation on these extended periods yields inadmissible demand systems.
title Unveiling Plant-Product Productivity via First-Order Conditions: Robust Replication of Orr (2022)
topic General Economics
Economics
url https://arxiv.org/abs/2501.19354