Why Do Rural Firms Live Longer?
Li Yu (),
Peter Orazem and
Robert W. Jolly
American Journal of Agricultural Economics, 2010, vol. 93, issue 3, 669-688
Abstract:
For the first thirteen years after entry, the hazard rate for firm exits is persistently higher for urban than for 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 18% greater in Iowa and 58% greater in Kansas than observationally equivalent urban firms. Evidence is consistent with a lower salvage price for the capital assets of failed rural firms. Entrepreneurs will require a higher success probability to enter a rural market rather than an urban market to leave their expected profits equal. Copyright 2010, Oxford University Press.
Date: 2010
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1093/ajae/aaq173 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Why Do Rural Firms Live Longer? (2011) 
Working Paper: Why Do Rural Firms Live Longer? (2009) 
Working Paper: Why Do Rural Firms Live Longer? (2009) 
Working Paper: Why do rural firms live longer? (2009) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:93:y:2010:i:3:p:669-688
Access Statistics for this article
American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu
More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().