TY  - JOUR
AU  - Cockburn,Iain
AU  - Frank,Murray
TI  - Market Conditions and Retirement of Physical Capital:  Evidence fron Oil Tankers
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4194
PY  - 1992
Y2  - October 1992
UR  - http://www.nber.org/papers/w4194
L1  - http://www.nber.org/papers/w4194.pdf
N1  - Author contact info:
Iain M. Cockburn
School of Management
Boston University
595 Commonwealth Ave
Boston, MA 02215
Tel: 617/588-1486
Fax: 815/550-2353
E-Mail: cockburn@bu.edu

Murray Frank
Carlson School of Management
University of Minnesota
321-19th Avenue South
Minneapolis, MN 55455
Tel: 612-625-5678
E-Mail: murray.frank@csom.umn.edu
AB  - The endogeneity of capital retirements is studied for the particular case of oil tankers from 1979--1989. A model is estimated to examine the effect of changes in market conditions on the price and scrappage of tankers. Energy price rises had a major impact on the value of ships and on which ships were scrapped. A simple model is able to account for many features of the market. We use the information implicit in second-hand prices to ease the computational burden for the model that is estimated.
ER  -