Showing 1 - 10 of 19
We examine the entry and exit process in the Finnish manufacturing industry. Microeconomic explanations of entry and …. The results show that scale economies form a significant entry barrier, but the evidence on their role as an exit barrier …. Industry growth has a positive influence on entry and a negative influence on exit, but also variables describing the general …
Persistent link: https://www.econbiz.de/10005648912
We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A … provides a good fit to the dynamics of firm entry and exit, output and R&D, and its implied elasticities are in the ballpark of ….5% because it deters entry of new high-type firms. On the contrary, substantial improvements (of the order of 5% improvement in …
Persistent link: https://www.econbiz.de/10010698829
Using data from US labour market areas, we quantify empirical associations between entry by small firms and a vector of …. Distinct and robust associations are found for net and gross rates of entry. These results suggest a richer variety of effects … of entry than previously documented, and point to several potential tradeoffs associated with entry by small firms. …
Persistent link: https://www.econbiz.de/10005190767
In his celebrated 1966 Econometrica article, Granger first hypothesized that there is a ‘typical’ spectral shape for an economic variable. This ‘typical’ shape implies decreasing levels of energy as frequency increases, which in turn implies an extremely long cycle in economic...
Persistent link: https://www.econbiz.de/10008626082
Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...
Persistent link: https://www.econbiz.de/10008918570
Convergence and synchronisation of business and growth cycles are important issues in the efficient formulation of euro area economic policies, and in particular European Central Bank (ECB) monetary policy. Although several studies in the economics literature address the issue of synchronicity...
Persistent link: https://www.econbiz.de/10008643872
While it is painfully clear that the ’ever closer’ monetary and financial union in the EU has run into serious trouble there has been very little study of the degree to which the countries have become similar or different in their economic growth dynamics. This paper therefore goes beyond...
Persistent link: https://www.econbiz.de/10010722796
In this paper the relationship between the growth of real GDP components is explored in the frequency domain using both static and dynamic wavelet analysis. This analysis is carried out separately for the US and UK using quarterly data, and the results are found to be substantially different for...
Persistent link: https://www.econbiz.de/10009643484
In this paper we use a New Keynesian model to explain why volatility transfer from high frequency to low frequency cycles can and did occur during the period commonly referred to as the "great moderation". The model suggests that an increase in inflation aversion and/or a reduction to a...
Persistent link: https://www.econbiz.de/10010945112
We investigate the causes of the Finnish Great Depression, 1990-1993. We find that the collapse of the overheated financial and banking sectors starting in 1989 was the trigger of the economic crisis. Foreign shocks, which include the collapse of trade with USSR in 1991, can account for at most...
Persistent link: https://www.econbiz.de/10010945114