Post by arfanho7 on Feb 21, 2024 23:12:50 GMT -8
It follows from firms maximizing behavior that higher prices induce more integration. The reason is that at low prices increases in revenue resulting from enhanced productivity are too small to justify the cost whereas at high prices the revenue benefit exceeds the cost. Trade policy provides a source of exogenous price variation to assess the validity of this prediction higher tariffs should lead to higher prices and therefore to more integration.
We construct firm level indices of vertical integration for a large set of countries and industries and exploit cross section and time series variation in import tariffs to examine their impact America Cell Phone Number List on firm boundaries. Our empirical results provide strong support for the view that output prices are a key determinant of vertical integration. Pages item.aspx num FORTHCOMING PRODUCTION AND OPERATIONS MANAGEMENT Technology Choice and Capacity Portfolios under Emissions Regulation By Drake David Paul R. Kleindorfer and Luk N. Van Wassenhove ABSTRACT—We study the impact of emissions tax and emissions cap and trade regulation on a firm s technology choice and capacity decisions.
We show that emissions price uncertainty under cap and trade results in greater expected profit than a constant emissions price under an emissions tax which contradicts popular arguments that the greater uncertainty under cap and trade will erode value. We further show that two operational drivers underlie this result i the firm s option not to operate which effectively right censors the uncertain emissions price and ii dispatch flexibility which is the firm s ability to first deploy its most profitable capacity given the realized emissions price.
We construct firm level indices of vertical integration for a large set of countries and industries and exploit cross section and time series variation in import tariffs to examine their impact America Cell Phone Number List on firm boundaries. Our empirical results provide strong support for the view that output prices are a key determinant of vertical integration. Pages item.aspx num FORTHCOMING PRODUCTION AND OPERATIONS MANAGEMENT Technology Choice and Capacity Portfolios under Emissions Regulation By Drake David Paul R. Kleindorfer and Luk N. Van Wassenhove ABSTRACT—We study the impact of emissions tax and emissions cap and trade regulation on a firm s technology choice and capacity decisions.
We show that emissions price uncertainty under cap and trade results in greater expected profit than a constant emissions price under an emissions tax which contradicts popular arguments that the greater uncertainty under cap and trade will erode value. We further show that two operational drivers underlie this result i the firm s option not to operate which effectively right censors the uncertain emissions price and ii dispatch flexibility which is the firm s ability to first deploy its most profitable capacity given the realized emissions price.