On the Nature of Capital Adjustment Costs

2006/07/01 by RUSSELL W. COOPER, Russell W. Cooper, John Haltiwanger +1
Economics, Econometrics and Finance · #Economic theories and models #Capital Investment and Risk Analysis #Economic Growth and Productivity

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

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

Citations

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