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

See all articles by Jan Podivinsky

Jan Podivinsky

University of Southampton - Division of Economics

Geoff Stewart

University of Southampton - Division of Economics

Date Written: August 2009

Abstract

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

Podivinsky, Jan and Stewart, Geoff, Modeling Proportions: Random Effects Models of UK Firm Entry (August 2009). The Singapore Economic Review, Vol. 54, Issue 3, pp. 367-377, 2009 . Available at SSRN: https://ssrn.com/abstract=1502453

Jan Podivinsky (Contact Author)

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom

Geoff Stewart

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom

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