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A comment on Nishimura, Nakajima, and Kiyota's "Does the natural selection mechanism still work in severe recessions? : Examination of the Japanese economy in the 1990s"

Okada, Tae; Horioka, Charles - 2007

Nishimura et al. (2005) analyze the entry/exit behavior of Japanese firms during the 1990s and find that relatively efficient firms exited while relatively inefficient firms survived during the banking-crisis period of 1996-97. They conclude that the natural selection mechanism (NSM) apparently...