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

Dakshina G. De Silva, Georgia Kosmopoulou, Carlos Lamarche

Research output: Contribution to journalArticlepeer-review

9 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 languageEnglish
Pages (from-to)113-131
Number of pages19
JournalJournal of Economic Behavior and Organization
Volume137
DOIs
StatePublished - 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

Fingerprint

Dive into the research topics of 'Subcontracting and the survival of plants in the road construction industry: A panel quantile regression analysis'. Together they form a unique fingerprint.

Cite this