Irreversibilities in fixed capital adjustment - Evidence from Mexican and Colombian plants

Authors
Gelos, RG Isgut, A
Citation
Rg. Gelos et A. Isgut, Irreversibilities in fixed capital adjustment - Evidence from Mexican and Colombian plants, ECON LETT, 74(1), 2001, pp. 85-89
Citations number
8
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
74
Issue
1
Year of publication
2001
Pages
85 - 89
Database
ISI
SICI code
0165-1765(200112)74:1<85:IIFCA->2.0.ZU;2-P
Abstract
Using two largely novel datasets, we examine how Colombians and Mexicans in vest in response to imbalances between actual and "desired" capital stock l evels. Nonparametric estimates of the average adjustment function support t he presence of irreversibilities, but not of nonconvexities. (C) 2001 Elsev ier Science B.V. All rights reserved.