Why do rural firms live longer?

dc.contributor.author Yu, Li
dc.contributor.author Orazem, Peter
dc.contributor.author Jolly, Robert
dc.contributor.department Economics
dc.date 2018-02-17T17:35:22.000
dc.date.accessioned 2020-06-30T02:13:29Z
dc.date.available 2020-06-30T02:13:29Z
dc.date.issued 2009-07-03
dc.description.abstract <p>For the first 13 years after entry, the hazard rate for firm exits is persistently higher for urban than rural firms. While differences in observed industry market, local market and firm attributes explain some of the rural-urban gap in firm survival, rural firms retain a survival advantage 25% greater than observationally equivalent urban firms. In competitive markets, the remaining survival advantage for rural firms must be attributable to unobserved factors that are known at the time of entry. One plausible candidate for such a factor is thinner markets for the capital of failed rural firms. The implied lower salvage value of rural firms suggests that firms sorting into rural markets must have a higher probability of success in order to leave their expected profits equal to what they could earn in an urban market.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/87/
dc.identifier.articleid 1086
dc.identifier.contextkey 8641998
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/87
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22557
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/87/p1455_2009_07_03.pdf|||Sat Jan 15 02:15:31 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords rural
dc.subject.keywords urban
dc.subject.keywords firm survival
dc.subject.keywords firm entry
dc.subject.keywords entry
dc.subject.keywords exit
dc.subject.keywords survival
dc.subject.keywords sorting
dc.subject.keywords salvage value
dc.subject.keywords hazard rate
dc.title Why do rural firms live longer?
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isAuthorOfPublication c9a0d8cb-216b-42cb-a055-23a56438e364
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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