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Shadow price of capital and the Furubotn–Pejovich effect: Some empirical evidence for Italian wine cooperatives

✍ Scribed by Ornella Wanda Maietta; Vania Sena


Publisher
John Wiley and Sons
Year
2008
Tongue
English
Weight
102 KB
Volume
24
Category
Article
ISSN
1524-1904

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✦ Synopsis


Abstract

We test the underinvestment hypothesis (the so‐called Furubotn–Pejovich effect) from the specialized literature on co‐ops by comparing the shadow price of capital and the dual capacity utilization index for a panel of Italian cooperative and conventional firms, 1996–2003. The results do not show any difference between co‐ops and conventional firms in this respect. Copyright © 2008 John Wiley & Sons, Ltd.