Atkeson, A;
Kehoe, PJ;
(2005)
Modeling and measuring organization capital.
Journal of Political Economy
, 113
(5)
pp. 1026-1053.
10.1086/431289.
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Abstract
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.
| Type: | Article |
|---|---|
| Title: | Modeling and measuring organization capital |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1086/431289 |
| Publisher version: | https://doi.org/10.1086/431289 |
| Language: | English |
| Additional information: | This is the published version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10054402 |
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