costs has no impact at all, in steady-state, on firms' investments in process innovation. We then show that if only a subset … of firms export, a decline in marginal trade costs raises process innovation in exporting firms relative to that of non …-exporting firms. This reallocation of process innovation reinforces existing patterns of comparative advantage, and leads to an …

This paper studies the role of stabilization policy in a model where firm entry responds to shocks and uncertainty. We … fixed cost of entry. The presence of endogenous entry can alter the dynamic response to shocks, leading to greater … persistence in the effects of monetary and real shocks. Entry affects welfare, depending on the love of variety in consumption and …

implications for gauging the rate of innovation in the semiconductor sector. …

---promoting bond issuance causes exit while cheaper bank credit induces entry. When reducing transactions costs in one market, the …

This paper investigates the role that the entry and exit of heterogeneous firms plays in shaping aggregate fluctuations … in economic activity. In so doing, it develops a dynamic stochastic general equilibrium model in which procyclical entry … representative firms may overstate the actual role of procyclical entry and exit in imperfectly competitive markets as a propagation …