expected return on the election results will be higher for electors who have high exit costs. According to the theory of …

A semi-parametric approach is used to estimate firm propensity to exit. The unobserved individual productivity of a … firm is first estimated using the Ackerberg et al. (2006) approach and then introduced as a determinant of firm exit in … conjunction with other variables that may serve as barriers to exit, including the firm's level of sunk costs and the industry …