Least Deviance Estimation bootstrap techniques applied to aggregated production elasticity coefficients. Empirical evidence from the Palestinian Industry

Alexandrina Ioana SCORBUREANU


The aim of this paper is to provide production elasticity estimates for the aggregate production functions of developing countries. We use aggregate data concerning the production sectors from two Middle Eastern countries. Unfortunately, the available data are quite of bad quality (small samples with high variability and time inconsistency), implying that the traditional OLS-estimates are biased. We propose an estimation procedure based on the bootstrap least deviance technique and find that the estimated elasticity is both significant and robust. For time-saving purposes, we repeat estimates for three available cross-sections of 71 manufacturing aggregates, and obtain increasing returns to scale for the manufacturing sector, which are supposed to reflect the imperfect competition of the market and/or the existence of high set-up or sunk costs, that are mandatory in order to produce at all.


aggregate elasticity estimation, bootstrap LAD estimator, production elasticity, developing countries

Full Text:


Copyright (c) 2011 author

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

As to respect GDPR, this site do not allow free registation. Please contact us at: ashues@spiruharet.ro

GDPR Policy:

Please read the statement below:
Processing of personal data and free movement of these data

Registering with this site the author agree with the collection, processing and use of his personal data, exclusively within the ASHUES journal.




To crown and encourage research efforts of the authors, at the end of a year of publishing our journal board will award online the best papers by distinctions:

1. Best Original Paper Award -  for the paper that has brought something completely new in the reader's attention (a new concept, a new trend, a new proposal in research, etc.)

2. Excellence Award - for the most cited paper and visualized in the online environment during the year

3. First, Second and Third Award- for the best documented and substantiated papers during the year

4. Special Award - to award PhD students and postdocs for the most well documented and substantiated paper