Wilko Letterie

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Non-Linearities in the Expansion of Capital Stock The empirical identification of non-linearities in investment relies on how investment is assumed to be separated into various regimes. Using German establishment-level panel data, we estimate a two-regime model of replacement and expansion investment which allows us to observe regime separation, an aspect(More)
Sequentiality versus Simultaneity: Interrelated Factor Demand A structural model is developed and estimated by a maximum likelihood routine to investigate interrelated factor demand subject to nonconvex adjustment costs. The dataset concerns Norwegian plants operating in manufacturing industries and it covers the period 1993-2005. The estimates indicate(More)
In this paper advisors are selected by two ministers with con ̄icting interests in order to (1) acquire information, and (2) obtain political legitimacy concerning a project. In the end, parliament decides whether or not the project, of which the consequences are uncertain, is implemented. In principle a minister wants to appoint an advisor whose(More)
We assess empirically the micro-foundations of producers’ sticky pricing behaviour. The intertemporal profit function considered accounts for various functional forms of menu costs. The focus is on the analysis of multiproduct plants, and the menu costs therefore also allow for economies of scope. The structural model developed is tested on a merged panel(More)
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