A note on testing for complementarity and substitutability in the case of multiple practices

A note on testing for complementarity and substitutability in the case of multiple practices

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Article ID: iaor20114573
Volume: 35
Issue: 3
Start Page Number: 263
End Page Number: 269
Publication Date: Jun 2011
Journal: Journal of Productivity Analysis
Authors: , ,
Keywords: productivity
Abstract:

Recent empirical studies of firm‐level performance have tested complementarity in the case of multiple practices. These papers have drawn conclusions using potentially biased estimates of pair‐wise interaction effects. We develop a consistent and simple testing framework and test it against alternatives.

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