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Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 3 Production function: estimation results

From: The effects of new technology on productivity: technological improvement and reallocation efficiency in the Japanese steelmaking industry

 

Pooled

Tech-specific

(1)

(2)

(3)

(4)

Capital

0.343 (0.409)

0.445*** (0.049)

0.343*** (0.151)

0.362** (0.199)

Labor

0.575*** (0.097)

0.590*** (0.049)

0.574*** (0.082)

0.565*** (0.092)

Capital × BOF

 

0.742*** (0.292)

0.836*** (0.212)

0.849*** (0.321)

Labor ×  BOF

 

− 0.396* (0.214)

− 0.417*** (0.099)

− 0.437*** (0.113)

\(\phi\) function

Polynomial

Polynomial

Polynomial

Kernel

Selection correction

Yes

 

Yes

Yes

N

1507

1507

1507

1507

  1. Standard errors in parentheses. Asterisks indicate the significance level; *at 10 percent, **at 5 percent, and ***at 1 percent
  2. BOF is a dummy variable; it takes value one if a furnace uses BOF technology
  3. In “Tech-specific” estimation, I include cross term of the inputs and BOF dummy. In “Pooled”, I do not. All results are estimated by using the ACF-type method
  4. “\(\phi\) function” is control function in the first-stage estimation
  5. In the “Selection correction” row, "Yes" means that I correct for selection bias caused by entries and exits
  6. Standard errors are clustered at the furnace level, and in the ACF, they are calculated by block bootstrap to correct for the bias caused by using two-step estimation
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