Three Essays on the Econometrics of Production, Productivity, and Capacity Utilization

摘要

Essay 1 estimates capital-labor-energy-materials nested CES production functions for each of the twenty, two-digit SIC, industries in U.S. manufacturing, computes the implied elasticities of substitution, and develops a production function based capacity utilization series. Capital and energy are complements while labor and energy or capital are substitutes. Essay 2 develops an econometric technique for finding the industry-wide production function from information about the variation in productivity across production units. The technique is based on a theorem by Houthakker which connects the Pareto Capacity distribution to the aggregate Cobb-Douglas production function. Essay 3 uses production functions to analyze the returns to R&D and the effect of new OSHA and EPA regulation on productivity in the chemical industry. It also simulates the effect of a 30% investment tax credit on productivity.