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We analyse productivity growth in UK manufacturing 1980-92 using the newly available ARD panel of establishments drawn … organizational change) and 'external' restructuring (the process by which less efficient establishments exit and more efficient … establishments enter and increase market share). We find that (a) 'external restructuring' accounts for 50% of labour productivity …
Persistent link: https://www.econbiz.de/10005666830
, this being particularly relevant to de novo entrants as compared to entry by established firms. Current size is also found … differences, past growth matters for survival suggesting a partial adjustment process for firm size in the post entry period …. Finally, new plants are more likely to live longer if they enter growing industries or industries with little entry activity. …
Persistent link: https://www.econbiz.de/10005067401
that entry and exit rates are positively correlated across industries. Our objective is to investigate the effect of sunk … costs and, in particular, market size on entry and exit rates. We analyse a stochastic dynamic model of a monopolistically … show existence and uniqueness of a stationary equilibrium with simultaneous entry and exit: efficient firms survive while …
Persistent link: https://www.econbiz.de/10005136712
firms, and the fact that larger firms supply more products than smaller firms, implies that standard productivity measures … are not independent of demand system assumptions and probably dramatically understate the relative productivity of the …
Persistent link: https://www.econbiz.de/10011084590
aggregation problem introduces a bias into standard measures of firm productivity. We develop a theoretical model of heterogeneous …
Persistent link: https://www.econbiz.de/10005504461
Reduced form approaches to estimate markups typically exploit variation in observed input and output. However, these approaches ignore the presence of fixed input factors, which may result in an overestimation of the price-cost margins. We first propose a new methodology to simultaneously...
Persistent link: https://www.econbiz.de/10008861906
A growing body of literature shows that geographic location plays an important role in influencing economic phenomena. Despite the renewed interest in economic geography, the existing literature on the firm size distribution (FSD) has ignored the impact of geographic location. A wave of recent...
Persistent link: https://www.econbiz.de/10005792128
This paper examines the frequency, pervasiveness and determinants of product switching among U.S. manufacturing firms. We find that two-thirds of firms alter their mix of five-digit SIC products every five years, that one-third of the increase in real U.S. manufacturing shipments between 1972...
Persistent link: https://www.econbiz.de/10005114373
theoretical model incorporates heterogeneous firms, heterogeneous products, and ongoing entry and exit. In equilibrium, firm … fixed costs. Changes in market structure result in systematic patterns of firm entry/exit and product switching. … productivity is correlated with product fixed costs, with the most productive firms choosing to make the products with the highest …
Persistent link: https://www.econbiz.de/10005656182
the defence in a dynamic setting with uncertainty. A firm entering a market also considers its ease of exit, foreseeing … that it may later wish to leave should market conditions deteriorate. By facilitating exit in times of financial distress …, the failing firm defence may encourage entry sufficiently that welfare is increased overall. This view of the defence has …
Persistent link: https://www.econbiz.de/10005791899