Peer reviewed
ERIC Number: EJ725304
Record Type: Journal
Publication Date: 2005-Oct-1
Pages: 28
Abstractor: Author
ISBN: N/A
ISSN: ISSN-0022-3808
EISSN: N/A
Modeling and Measuring Organization Capital
Atkeson, Andrew; Kehoe, Patrick J.
Journal of Political Economy, v113 n5 p1026 Oct 2005
Manufacturing plants have a clear life cycle: they are born small, grow substantially with age, and eventually die. Economists have long thought that this life cycle is driven by organization capital, the accumulation of plant-specific knowledge. The location of plants in the life cycle determines the size of the payments, or organization rents, plant owners receive from organization capital. These payments are compensation for the interest cost to plant owners of waiting for their plants to grow. We use a quantitative growth model of the life cycle of plants, along with U.S. data, to infer the overall size of these payments.
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Publication Type: Journal Articles; Numerical/Quantitative Data; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A