On the Nature of Capital Adjustment Costs

Russell W. Cooper; John Haltiwanger

doi:10.1111/j.1467-937x.2006.00389.x

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Review of Economic Studies Vol. 73 No. 3 2006

On the Nature of Capital Adjustment Costs

Russell W. Cooper¹; John Haltiwanger²

¹ The University of Texas at Austin · ² University of Maryland, College Park

Abstract

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

DOI: 10.1111/j.1467-937x.2006.00389.x
Volume: 73
Issue: 3
Pages: 611-633
Language: en
Sources: bibtex:phds-export.bib openalex crossref

On the Nature of Capital Adjustment Costs

Abstract

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