A note on testing for complementarity and substitutability in the case of multiple practices
M. Carree, Boris Lokshin & René Belderbos
#2010-056
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.
Keywords: Complementarity; Supermodularity; Firm performance
JEL-code: C12; D24
UNU-MERIT Working Papers
ISSN 1871-9872
