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competition authorities should not forbid such vertical mergers if they seek to maximize social welfare …
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these predictions using plant-level data for the UK manufacturing sector. Most importantly, and consistent with theory, we … the likelihood of vertical integration. Also consistent with theory, both these effects are stronger when the supplying …
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This paper investigates the determinants of vertical integration using data from the UK manufacturing sector. We find that the relationship between a downstream (producer) industry and an upstream (supplier) industry is more likely to be vertically integrated when the producing industry is more...
Persistent link: https://www.econbiz.de/10012467690
This paper investigates the determinants of vertical integration using data from the UK manufacturing sector. We find that the relationship between a downstream (producer) industry and an upstream (supplier) industry is more likely to be vertically integrated when the producing industry is more...
Persistent link: https://www.econbiz.de/10013218968
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We provide a theoretical model linking firm characteristics and expected returns. The key ingredient of our model is technological shocks embodied in new capital (IST shocks), which affect the profitability of new investments. Firms' exposure to IST shocks is endogenously determined by the...
Persistent link: https://www.econbiz.de/10013107998