Investment Decisions and capital adjustment costs: estimation of a dynamic discrete choice model using panel data for greek manufacturing firms (Journal article)

Lapatinas, A.

In this paper we estimate a dynamic structural model of capital investment at the firm level. Our dataset consists of a balanced panel of 1419 Greek firms. Two important features are present in our dataset. There are periods in which firms decide not to invest and periods of large investment episodes. This empirical evidence of infrequent and lumpy investment is in favour of irreversibilities and non-convex capital adjustment costs. Following Cooper and Haltiwanger (2006) we consider a dynamic discrete choice model of a general specification of adjustment costs including convex and non-convex components. We also assume total irreversibility of investment. We use an indirect inference procedure as in Gourieroux, Monfort and Renault (1993) and Smith (1993) to estimate the structural parameters. Our goal is to investigate the nature of the capital adjustment process at the firm level for Greek data.
Institution and School/Department of submitter: Πανεπιστήμιο Ιωαννίνων. Σχολή Οικονομικών και Κοινωνικών Επιστημών. Τμήμα Οικονομικών Επιστημών
URI: https://olympias.lib.uoi.gr/jspui/handle/123456789/11172
Appears in Collections:Άρθρα σε επιστημονικά περιοδικά ( Ανοικτά)

Files in This Item:
File Description SizeFormat 
Lapatinas-2007-Investment Decisions and.pdf196.75 kBAdobe PDFView/Open    Request a copy


 Please use this identifier to cite or link to this item:
https://olympias.lib.uoi.gr/jspui/handle/123456789/11172
  This item is a favorite for 0 people.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.