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Spatially correlated exit strategies in the baking industry

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This article uses a unique data set to analyse economic factors that explain firm exit and the interrelation across firms in space when exiting. Results show the effectiveness of modelling spatial correlation in a logit exit model. Indeed, in our application, reliable statistical results could only be drawn from our data when including spatial correlation in the model.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500438913

Affiliations: 1: Fannie Mae, 3900 Wisconsin Ave., Washington DC, USA 2: Agri/Business and Applied Economics, North Dakota State University, Fargo, USA

Publication date: March 1, 2007

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