Subcontracting and the survival of plants in the road construction industry: A panel quantile regression analysis

Dakshina G. De Silva; Georgia Kosmopoulou; Carlos Lamarche

doi:10.1016/j.jebo.2017.02.016

Subcontracting and the survival of plants in the road construction industry: A panel quantile regression analysis

Dakshina G. De Silva, Georgia Kosmopoulou, Carlos Lamarche

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10 Scopus citations

Abstract

This paper investigates how subcontracting parts of contracted work shapes entrants’ success and survival. We find that newly developed quantile regression approaches can be adapted to study survival of firms competing for government contracts in road construction. The method is applied on a data set that includes patterns of firm entry, exit and auction related information. We find an apparent increase in the business life of firms who subcontract out part of their projects. In Texas, these subcontracting effects appear to be more pronounced for firms with few or no options outside the industry, and among firms who contract out part of their work to Disadvantaged Business Enterprises.

Original language	English
Pages (from-to)	113-131
Number of pages	19
Journal	Journal of Economic Behavior and Organization
Volume	137
DOIs	https://doi.org/10.1016/j.jebo.2017.02.016
State	Published - May 1 2017

Bibliographical note

Publisher Copyright:
© 2017 Elsevier B.V.

Keywords

Entrants
Procurement auctions
Quantile regression
Survival analysis

ASJC Scopus subject areas

Economics and Econometrics
Organizational Behavior and Human Resource Management

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10.1016/j.jebo.2017.02.016

Cite this

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title = "Subcontracting and the survival of plants in the road construction industry: A panel quantile regression analysis",

abstract = "This paper investigates how subcontracting parts of contracted work shapes entrants{\textquoteright} success and survival. We find that newly developed quantile regression approaches can be adapted to study survival of firms competing for government contracts in road construction. The method is applied on a data set that includes patterns of firm entry, exit and auction related information. We find an apparent increase in the business life of firms who subcontract out part of their projects. In Texas, these subcontracting effects appear to be more pronounced for firms with few or no options outside the industry, and among firms who contract out part of their work to Disadvantaged Business Enterprises.",

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AU - Kosmopoulou, Georgia

AU - Lamarche, Carlos

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AB - This paper investigates how subcontracting parts of contracted work shapes entrants’ success and survival. We find that newly developed quantile regression approaches can be adapted to study survival of firms competing for government contracts in road construction. The method is applied on a data set that includes patterns of firm entry, exit and auction related information. We find an apparent increase in the business life of firms who subcontract out part of their projects. In Texas, these subcontracting effects appear to be more pronounced for firms with few or no options outside the industry, and among firms who contract out part of their work to Disadvantaged Business Enterprises.

KW - Entrants

KW - Procurement auctions

KW - Quantile regression

KW - Survival analysis

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JO - Journal of Economic Behavior and Organization

JF - Journal of Economic Behavior and Organization

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Subcontracting and the survival of plants in the road construction industry: A panel quantile regression analysis

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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