000			03248cam a22003497 4500
001			w3939
003			NBER
005			20211020114610.0
006			m o d
007			cr cnu||||||||
008			210910s1991 mau fo 000 0 eng d
100	1		_aGood, David H. _911653
245	1	4	_aThe Structure of Production, Technical Change and Efficiency in a Multiproduct Industry: _bAn Application to U.S. Airlines / _cDavid H. Good, M. Ishaq Nadiri, Robin C. Sickles.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1991.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w3939
500			_aDecember 1991.
520	3		_aIn this paper we construct a short run model of the firm describing the behavior of thirteen U.S. airlines during the difficult transition to deregulation. Several modeling scenarios are developed to assess three common assumptions in cost studies: the use of time as a proxy for technological change as opposed to a more thorough description of changes in the production technique, the assumption of cost minimizing behavior as opposed to permitting allocative inefficiency in input selection, and the assumption exogeneity of output and capital and their characteristics as opposed to endogenous decisions regarding these variables. Derived properties of the resulting eight combinations of these issues are calculated to identify the sensitivity of these properties to the modeling assumptions. The most dramatic finding is that input concavity are reduced by 80 percent by relaxing the assumption of cost minimization. Demand and substitution elasticities are nearly twice as large under our most flexible compared to the least flexible scenarios. Measured returns to scale are substantively much higher when a more complete description of the production technique is included in the model, and when this production technique is permitted to be modeled endogenously. Similarly, cost complementarity is quite sensitive to the assumption of endogeneity. Finally, cost models based on these three common assumptions over state the level of productivity growth by as much as 40%. By correctly modeling and estimating the production technique, our most general model predicts a level of productivity growth which is quite similar to that based on Divisia indices calculations.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aD24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity _2Journal of Economic Literature class.
690		7	_aL93 - Air Transportation _2Journal of Economic Literature class.
700	1		_aNadiri, M. Ishaq. _917388
700	1		_aSickles, Robin C.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w3939.
856	4	0	_uhttps://www.nber.org/papers/w3939
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w3939
942			_2ddc _cW-PAPER
999			_c344522 _d303084