Investment and exit decisions at the plant level : a dynamic programming approach /
This book develops a dynamic programming framework for the analysis of firms' joint investment and market exit decisions and reviews methods for econometric estimation of such models. In an empirical application of this framework, a version of this model that allows for financial constraints is...
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| Format: | eBook |
| Language: | English |
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Heidelberg ; New York :
Physica-Verlag,
1998.
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| Series: | Contributions to economics.
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| Online Access: | Connect to the full text of this electronic book |
| Summary: | This book develops a dynamic programming framework for the analysis of firms' joint investment and market exit decisions and reviews methods for econometric estimation of such models. In an empirical application of this framework, a version of this model that allows for financial constraints is estimated by structural methods, using a plant-level dataset for a sample of U.S. firms. The empirical analysis shows that both the plant's productivity and firm-level financial constraints have important effects on plant-level investment and exit decisions. The main contribution of the book to the empirical investment literature is the application of a mixed discrete-continuous Markov process framework to investment and exit decisions, and the structural estimation using a full-information maximum-likelihood method, the nested fixed-point algorithm. |
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| Item Description: | "With 5 figures and 20 tables." Electronic resource. |
| Physical Description: | 1 online resource (x, 186 pages) : illustrations |
| Bibliography: | Includes bibliographical references. |
| ISBN: | 9783642998034 (electronic bk.) 3642998038 (electronic bk.) |