Modeling Proportions: Random Effects Models of UK Firm Entry
The Singapore Economic Review, Vol. 54, Issue 3, pp. 367-377, 2009
Posted: 9 Nov 2009
Date Written: August 2009
A long-standing issue in industrial economics is the understanding of the relative prevalence of labor-managed firms (LMFs) and capitalist firms across industries. In proportionate terms, LMF entry tends to be highly concentrated in particular industries. We provide empirical evidence on this by modeling the proportions of industry entrants that are LMFs, using a panel of UK manufacturing industries. Random effects proportions models indicate the role and importance of risk and capital requirements as potential deterrents to LMF entry.
Keywords: Proportions data, random effects, panel data, firm entry
JEL Classification: C23, L11
Suggested Citation: Suggested Citation