Public instruments for business management in chilean wine industry

Abstract

In Chile there is a wide availability of public instruments to promote productivity in business management, which in practice serve as financial hedge instruments. Based on multivariate analysis the authors estimate the probability of using public instruments in Chilean wine industry comparing logit and probit models. Results indicate that probability depends on different socioeconomic variables and sources of risk. The global correct prediction was estimated in 80.5% through ROC curve analysis.