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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.
Applied Stochastic Models in Business and Industry – Wiley
Published: Sep 1, 2008
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