time effects. All countries display a massive reallocation of resources, with the entry and exit of many firms in all … market contestability. There are also large differences across groups of countries. While entry and exit rates are fairly … productivity directly, by reallocating resources towards more productive uses, but also indirectly through the effects of increased …

of entry and exit of U.S. manufacturing plants, in terms of employment and productivity, between 1972 and 1997. We show … how entry and exit patterns vary during the business cycle, and that the cyclical pattern of entry is very different from … the cyclical pattern of exit. Second, we build a general equilibrium model of plant entry, exit, and employment and …

1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that … enter in year t are less productive than incumbent firms in year t. (H3) Surviving firms from an entry cohort were more …