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Lower Bound Estimation - Quantile Regression and Simplex Method: An Application to Italian Manufacturing Sectors

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  • Maria Letizia Giorgetti

    ()
    (University of Brescia, Italy)

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    Abstract

    This paper estimates Sutton's lower bound [1991, 1998] by quantile regression, and thus shows the influence of outliers on previous estimates that used the simplex method. The lower bound estimates are obtained separately for exogenous and endogenous sunk cost industries in Italian manufacturing sectors in 1995, using microdata from the SCI'95 (Firms Accounts System) survey conducted by ISTAT (National Institute of Statistics, Italy). The results suggest that Sutton's predictions are robust. Copyright Blackwell Publishing Ltd 2003.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

    Volume (Year): 51 (2003)
    Issue (Month): 1 (03)
    Pages: 113-120

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    Handle: RePEc:bla:jindec:v:51:y:2003:i:1:p:113-120

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    Cited by:
    1. F. Lotti & E. Santarelli & M. Vivarelli, 2003. "Gibrat's Law and Market Selection in the Radio, TV & Telecommunications Equipment Industry," Working Papers 478, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Burghardt, Dirk, 2013. "The Impact of Trade Policy on Industry Concentration in Switzerland," Economics Working Paper Series 1317, University of St. Gallen, School of Economics and Political Science.

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