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heterogeneous firms and financial frictions. In the model, firms with a high return to capital increase their investment more …
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This paper presents one of the first studies of firm demographics in Estonia, particularly, on the processes of firm entry and exit as well as survival analysis of new firms. Also decompositions of productivity change into components consisting of resource reallocation, firm entry and exit, and...
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This paper provides a theory of financial frictions as a transmission mechanism for primitive shocks to translate into … units, rather than investment in new capital. News shocks on future technology improvement are introduced as a device to …, while such a pattern does not exist for new capital investment. Furthermore, capital acquisition of constrained firms is …
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