A Micro-econometric Model of Capital Utilization and Retirement: The Case of the U.S. Cement Industry
AbstractThis paper presents a microeconometric model of capital utilization and retirement. Estimates of a firm's discrete decision problem with regard to an existing piece of capital--whether to operate, hold idle, or retire it--are obtained, in the context of the U.S. cement industry, by solving a discrete-choice stochastic dynamic programming model. The estimates are then used to simulate the effects of product and input price changes, and changes in the size and age of a cement kiln on a firm's propensity to operate, hold idle, and retire a kiln. Copyright 1992 by The Review of Economic Studies Limited.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Economic Studies.
Volume (Year): 59 (1992)
Issue (Month): 2 (April)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6527
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