1996
DOI: 10.1002/(sici)1099-1255(199607)11:4<343::aid-jae404>3.3.co;2-w
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The inconsistency of common scale estimators when output prices are unobserved and endogenous
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1996
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Cited by 265 publications
(340 citation statements)
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“…11 This problem might arise when firms compete in an environment with differentiated products. To address this issue, we have adopted the solution suggested by Klette and Griliches (1996) which amounts to adding the growth in industry output as an additional regressor. Theoretically, this solution relies on the assumption that the market power of firms originates from product differentiation.…”
Section: General Resultscontrasting
confidence: 94%
“…11 This problem might arise when firms compete in an environment with differentiated products. To address this issue, we have adopted the solution suggested by Klette and Griliches (1996) which amounts to adding the growth in industry output as an additional regressor. Theoretically, this solution relies on the assumption that the market power of firms originates from product differentiation.…”
Section: General Resultscontrasting
confidence: 94%
“…In Table 2, the estimated demand elasticity in the output market is around −6.20 and is comparable to the estimates by Klette and Griliches (1996) and Grieco et al . (2016) who studied the Norwegian and Colombian manufacturing industries, respectively.…”
Section: Resultssupporting
confidence: 83%
“…Relative price differences can then be expressed in terms of relative output growth differences in the industry. In contrast to Klette and Griliches (1996) and Crépon et al (2002), we find that the growth of industry output is not statistically significant in the empirical specifications. 21 Moreover, its inclusion has no effect on the estimated values of the other coefficients.…”
Section: ( ) Ncontrasting
confidence: 94%
