subsequent entry plays a primary role in generating turbulence in high growth markets, while displacement of incumbents by recent … entrants is the main selection force in declining markets. As product life cycles progress, trial-and-error entry subsides, and … the use of panel data to study the evolution of single product markets. We find that replacement of exiting firms by …

's productivity is uncertain before entry, potential wages are heterogeneous, and expected productivity is positively related to an … entrepreneurship. The model also explains why low-profit firms do not always exit. …

on productivity growth. Growth is generated by selection, and sustained by entrants imitating successful incumbents …, are forced to exit. This results in an increase in average productivity of the economy. The intraindustry effect of trade … works through self-selection of the most productive firms into the export market. It leads to a reallocation of resources …

How important are firm entry and exit in shaping aggregate dynamics? We address this question by characterizing the … capital and aggregate fluctuations. We find that entry and exit propagate the effects of aggregate shocks. In turn, this … progressively more productive, keeping aggregate efficiency higher than in a scenario without entry or exit. We also find that both …

and Europe, evolutionary economics explains the role that diversity, selection andlearning plays in economic development …