Explaining the Size Distribution of Plants: An Approach Based on Civic Capital

Burker, Matthias ; Minerva, G. Alfredo (2011) Explaining the Size Distribution of Plants: An Approach Based on Civic Capital. Bologna: Dipartimento di Scienze economiche DSE, p. 40. DOI 10.6092/unibo/amsacta/4485. In: Quaderni - Working Paper DSE (755). ISSN 2282-6483.
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Abstract

We show that the distribution of plant size within narrowly defined industries is affected by the variation in the stock of civic capital that occurs at the provincial level. Data on plant size come from the 2001 Italian Census of Manufacturing and Services. Civic capital turns out to have a positive effect on both the average and the standard deviation of the plant size distribution. This effect is stronger in labor-intensive industries. The potential endogeneity of current civic capital is addressed by instrumenting it with historical variables. Our interpretation for these results is that civic capital is associated with reduced opportunistic behavior, which improves intra-firm cooperation and hampers the incidence of principal-agent problems, thus allowing plants to operate on a larger scale

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Burker, Matthias
Minerva, G. Alfredo
Keywords
agency problems, civic capital, cooperation, opportunism, plant size distribution
Subjects
ISSN
2282-6483
DOI
Deposit date
28 Jan 2016 11:42
Last modified
28 Jan 2016 11:42
URI

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