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As the exchange rate, foreign demand, production costs and export promotion policies evolve, manufacturing firms are continually faced with two issues: Whether to be an exporter, and if so, how much to export. We develop a dynamic structural model of export supply that characterizes these two...
Persistent link: https://www.econbiz.de/10013249348
We study how international trade and the exporting decisions of establishments affect establishment creation over the business cycle in a general equilibrium model. The model captures two key features of establishment and exporter dynamics: i) new establishments start small and grow over time...
Persistent link: https://www.econbiz.de/10012863689
This paper examines the decision to enter the export market by German firms. While exports have played an important …
Persistent link: https://www.econbiz.de/10013228015
manufacturing firms. The data are unique in indicating how much each firm exports to each destination. Looking across all … exports to each destination into the size of the market and French share, variation in market share translates nearly …
Persistent link: https://www.econbiz.de/10013324638
. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence … on sales per worker does not support the higher returns for entrepreneurship rationale. Our evidence suggests that … entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people …
Persistent link: https://www.econbiz.de/10013070743
Using a comprehensive database of European firms, we study the effect of market entry regulations on the creation of new limited-liability firms, the average size of entrants, and the growth of incumbent firms. We find that costly regulations hamper the creation of new firms, especially in...
Persistent link: https://www.econbiz.de/10012785782
This paper analyzes Pareto optimal non-linear taxation of profits and labor income in a private information economy with endogenous firm formation. Individuals differ in both their skill and their cost of setting up a firm, and choose between becoming workers and entrepreneurs. I show that a tax...
Persistent link: https://www.econbiz.de/10013063453
entry, the progressivity of the tax also discourages entrepreneurship, and significantly so for some groups of households …
Persistent link: https://www.econbiz.de/10013230410
How does firm entry affect innovation incentives and productivity growth in incumbent firms? Micro-data suggests that there is heterogeneity across industries--incumbents in technologically advanced industries react positively to foreign firm entry, but not in laggard industries. To explain this...
Persistent link: https://www.econbiz.de/10013228275
A recent literature has introduced heterogeneous firms into models of international trade. This literature has adopted the convention of treating individual firms as points on a continuum. While the continuum offers many advantages this convenience comes at some cost: (1) Shocks to individual...
Persistent link: https://www.econbiz.de/10013066573