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On the Nature of Capital Adjustment Costs / Russell W. Cooper, John C. Haltiwanger.
- Format:
- Book
- Author/Creator:
- Cooper, Russell W.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w7925.
- NBER working paper series no. w7925
- Language:
- English
- Subjects (All):
- Capital investments.
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2000.
- Cambridge, Massachussetts : National Bureau of Economic Research, [2000]
- Summary:
- This paper studies the nature of capital adjustment at the plant-level. We use an indirect inference procedure to estimate the structural parameters of a rich specification of capital adjustment costs. In effect, the parameters are optimally chosen to reproduce the nonlinear relationship between investment and profitability that we uncover in the plant-level data. Our findings indicate that a model which mixes both convex and nonconvex adjustment costs with irreversibility fits the data best.
- Notes:
- Print version record
- September 2000.
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