Journal Article

Understanding the life-cycle of a manufacturing plant.

Abstract: In the final article this quarter, Aubhik Khan wonders: What determines whether a manufacturing plant survives? Is it access to credit markets? Or does learning about plants' profitability over time determine survival? Should government policy play a role in helping plants survive? In \\"Understanding the Life-Cycle of a Manufacturing Plant,\\" Khan discusses the collateral and learning views as two possible explanations for a typical plant's life-cycle. He concludes that although it remains unclear as to which explanation is more relevant, the two views have very different implications for what government can do and what it should do.

Keywords: Plant shutdowns; Manufactures;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 2002

Issue: Q2

Pages: 25-32