Shadow price of capital and the Furubotn-Pejovich effect: Some empirical evidence for Italian wine cooperatives

摘要

We test the underinvestment hypothesis (the so-called Furubotn-Pejovich effect) from the specialized literature on co-ops by comparing the shadow price of capital and the dual capacity utilization index for a panel of Italian cooperative and conventional firms, 1996-2003. The results do not show any difference between co-ops and conventional firms in this respect.