In this paper we test both sunk cost and strategic size liability predictions by looking at the exit behavior of a sample of Italian manufacturing plants. For this purpose, we focus on plants' size and ownership status. In particular, we distinguish independent plants from plants that belong to...

This paper aims to contribute to the empirical literature on industrial demography. It analyzes a stratified sample of the Italian metalworking industry composed of 810 plants with more than 10 employees. It considers plant closure over the period 1989-1997. Probit type econometric models are...