levinsohn_petrin {estprod}

Levinsohn-Petrin Estimation of Production Functions

Description

This function aims the estimation of production functions using Levinsohn-Petrin (2000).

Usage

levinsohn_petrin(
  data,
  formula = y ~ free | capital | proxy | controls,
  exit = NULL,
  gross = FALSE,
  id = "id",
  time = "year",
  bootstrap = TRUE,
  reps = 2,
  degree = c(3, 3),
  verify = TRUE,
  maxiter = 100,
  ...
)

Arguments

data

A data.frame or tibble containing the variables of the model.

formula

An object of the class formula.

exit

An optional formula with the name of the variabe indicator of firm's last period. ~exit, for example.

gross

If TRUE dependent variable is gross output.

id

A character with the name of the indicator variable.

time

A character with the name of the time variable.

bootstrap

An optional logical. If TRUE calculate bootstrap standard errors.

reps

The number of bootstrap replications.

degree

A vector with the number of polynomial interactions in each stage of the routine.

verify

Verify if inputs are sorted.

maxiter

Parameter of nls.lm at second stage.

...

Additional arguments.

Details

Multipart formula must be specified in the following order: y ~ free | capital | proxy | controls. Additional controls are optional. It is possible to use more than one variable, although the use of more than one capital may not be theoretically identified. The function returns an object of the estprod or boot classes (if bootstrap is TRUE).

Examples

data(estprod_data)
levinsohn_petrin(data = estprod_data, var1 ~ var2 | var3 | var4, 
exit = ~exit, id = "id", time = "year", bootstrap = TRUE)