Download This PaperMarket Conditions and Retirement of Physical Capital: Evidence Fron Oil Tankers
38 Pages Posted: 23 Aug 2000 Last revised: 19 Jun 2022
Date Written: October 1992
Abstract
The endogeneity of capital retirements is studied for the particular case of oil tankers from 1979--1989. A model is estimated to examine the effect of changes in market conditions on the price and scrappage of tankers. Energy price rises had a major impact on the value of ships and on which ships were scrapped. A simple model is able to account for many features of the market. We use the information implicit in second-hand prices to ease the computational burden for the model that is estimated.
Suggested Citation: Suggested Citation
Frank, Murray Z. and Cockburn, Iain M., Market Conditions and Retirement of Physical Capital: Evidence Fron Oil Tankers (October 1992). NBER Working Paper No. w4194, Available at SSRN: https://ssrn.com/abstract=235663
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