@techreport{NBERw7925,
 title = "On the Nature of Capital Adjustment Costs",
 author = "Russell W. Cooper and John C. Haltiwanger",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "7925",
 year = "2000",
 month = "September",
 URL = "http://www.nber.org/papers/w7925",
 abstract = {This paper studies the nature of capital adjustment at the plant-level.  We use an indirect inference procedure to estimate the structural parameters of a rich specification of capital adjustment costs. In effect, the parameters are optimally chosen to reproduce the nonlinear relationship between investment and profitability that we uncover in the plant-level data. Our findings indicate that a model which mixes both convex and nonconvex adjustment costs with irreversibility fits the data best.},
}