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Nobel Laureates

Exit Strategies and Plant-Closing Decisions: The Case of Steel


Volume: Volume 22, No. 2

Issue: Summer 1991

Pages: pp. 250-263

Authors: Mary E. Deily

Title: Exit Strategies and Plant-Closing Decisions: The Case of Steel

Abstract: Several articles show that differences in firm characteristics such as size or diversification may affect plant-closing decisions during an industry's decline such that higher-cost plants survive lower-cost plants. Examination of the plant-closing decisions of integrated steel firms indicates that individual plant characteristics that determine expected revenues and costs explain much of the firms' plant-closing behavior but that firm size may have had some effect at well.


JEL Classification

Metals and Metal Products; Cement; Glass; Ceramics (L610)
Industry Studies Manufacturing Metals; Iron, Steel, and Other (6312)