Papers › Estimating Idea Production: A Methodological Survey
Estimating Idea Production: A Methodological Survey
Ege Erdil, Tamay Besiroglu, Anson Ho
Accurately modeling the production of new ideas is crucial for innovation theory and endogenous growth models. This paper provides a comprehensive methodological survey of strategies for estimating idea production functions. We explore various methods, including naive approaches, linear regression, maximum likelihood estimation, and Bayesian inference, each suited to different data availability settings. Through case studies ranging from total factor productivity to software R&D, we show how to apply these methodologies in practice. Our synthesis provides researchers with guidance on strategies for characterizing idea production functions and highlights obstacles that must be addressed through further empirical validation.
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