Modeling and Measuring Organization Capital

By Andrew Atkeson, Patrick J. Kehoe. Journal of Political Economy, 2005

416 citations recorded by the source corpus.

Manufacturing plants have a clear life cycle: they are born small, grow substantially with age, and eventually die. Economists have long thought that this life cycle is driven by organization capital, the accumulation of plant‐specific knowledge. The location of plants in the life cycle determines the size of the payments, or organization rents, plant owners receive from organization capital. These payments are compensation for the interest cost to plant owners of waiting for their plants to grow. We use a quantitative growth model of the life cycle of plants, along with U.S. data, to infer the overall size of these payments.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/918b870d8872e4b3540a28a504436e9b47745daa

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

Citations in the corpus

The innovation value chain (2006, neutral): “This is consistent with a life-cycle model of plant development, which envisages a concentration of innovative activity occurring in the first years after a plant is established, and then declining levels of innovation and increasing product maturity (Atkeson and Kehoe, 2005).”
The Firm Size Distribution Across Countries and Skill-Biased Change in Entrepreneurial Technology (2018, neutral): “85 as in Atkeson and Kehoe (2005)), but somewhat less so for lower values.”
Monetary Policy, Corporate Finance and Investment (2018, neutral): “For instance, Atkeson and Kehoe (2005) consider a model with heterogeneity in productivity and age across plants, which they refer to as organizational capital. This type of intangibility captures how much knowledge a plant has accumulated in order to operate a given technology. Rampini and Viswanat”
Taking risks in the face of uncertainty: An exploratory analysis of green innovation (2016, neutral): “Firm vintage is also included to reflect the potential for cumulative accumulation of knowledge capital by older business units (Klette and Johansen, 1998) or life-cycle effects (Atkeson and Kehoe, 2005).”
Modeling the Transition to a New Economy: Lessons from Two Technological Revolutions (2007, positive): “Our method here builds on the work of Hugo Hopenhayn and Richard Rogerson (1993) and our own earlier work (Atkeson and Kehoe 2005).”
The Quality-Complementarity Hypothesis: Theory and Evidence from Colombia (2009, neutral): “See Atkeson and Kehoe (2005) for a related discussion.”
Innovation, quality management and learning: Short-term and longer-term effects (2017, neutral): “Multi-nationality is included here to reflect the potential for intra-firm knowledge transfer between national markets and plants, while plant vintage is intended to reflect the potential for cumulative accumulation of knowledge capital by older establishments (Klette and Johansen, 1998), or plant l”
Does Competition Raise Productivity Through Improving Management Quality (2011, neutral): “First, one could try and infer these as residuals using relatively weak conditions (variants of TFP) or more tightly specified structures (e.g. Atkeson and Kehoe, 2005).”