Lewis, Vivien - Nationale Bank van België/Banque national de Belqique (BNB) - 2006
This paper studies the behaviour of firm entry and exit in response to macroeconomic shocks. We formulate a dynamic …, profits and firm entry. The response of firm entry to the various shocks is freely estimated. Our main finding is that entry … responds significantly to all types of shocks. The results also show a crowding-in of firm entry following an exogenous rise in …