The Determinants of Plant Exit: The Evolution of the U.S. Refining Industry

This paper analyzes factors that affect the exit and expansion of U.S. petroleum refineries using plant-level capacity data from 1947 to 2013. We find that larger refineries are less likely to close and that refineries owned by a multi-plant firm are more likely to close. If a multi-plant firm closes a refinery, it is likely to close its smaller refineries. In contrast to previous literature, we find weak evidence that refineries owned by firms...