This paper reviews the evidence on the effects of recessions on potential output. In contrast to the assumption in mainstream macroeconomic models that economic fluctuations do not change potential output paths, the evidence is that they do in the case of recessions. A model is proposed to...

The article deals with understanding the phenomena of employee rationalisation in firms especially the ones operating in dynamic environments. In this paper the authors do an extensive review of literature to understand the complete cycle, which is from environmental conditions leading to...

Do firm entry and exit improve the competitiveness of regions? If so, is this a universal mechanism or is it contingent on the type of industry or region in which creative destruction takes place? This paper analyses the effect of firm entry and exit on the competitiveness of regions, measured...

This paper compares the aggregate effects of sectoral reallocation in the United States and Western Germany using a stochastic volatility model of sectoral employment growth. Reallocative shocks have no effect on the natural rate of unemployment in either country, and there is mild evidence that...

Word-of-mouth advertising involves activities to encourage consumers to talk about a product or company to friends and neighbours, setting in motion a chain of communication that could spread through a whole market. Each activity, itself small and relatively unimportant, could escalate through...