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Gibrat's Law of proportionate effect, as applied to firms, states that the growth rate of a firm is independent of its size. Empirical work on firm dynamics finds crucial deviations from Gibrat's Law such as smaller firms growing faster than larger firms (Evans, 1987, and Hall, 1987), a negative...
Persistent link: https://www.econbiz.de/10005345253
labour and firm entry and exit) contributed significantly to aggregate productivity growth before the crisis, but its … less of a factor. The lack of labour shedding, together with a low firm exit rate, is also indicative of low levels of …
Persistent link: https://www.econbiz.de/10010839035
This paper estimates a dynamic, structural model of entry and exit in an oligopolistic industry and uses it to quantify …. Entry costs faced by potential entrants, fixed costs faced by incumbent producers, and the toughness of short-run price … the dentist industry allow the entry cost to differ for geographic markets that were designated as Health Professional …
Persistent link: https://www.econbiz.de/10010732479
pattern (varieties and markets) of existing firms in combination with entry/exit of firms. The empirical results are …This paper develops a framework to appreciate the observed heterogeneity of firm size distributions and the entry and … exit of products and firms associated with it. It is based on a model where new products are introduced by innovating firms …
Persistent link: https://www.econbiz.de/10008626064
organizational change) and 'external' restructuring (the process by which less efficient establishments exit and more efficient …
Persistent link: https://www.econbiz.de/10005666830
choices are product quality, price and the timing of entry and exit. Further, firms incur sunk quality costs at time of entry …
Persistent link: https://www.econbiz.de/10010900436
We use a dynamic oligopoly model of entry and exit to evaluate how entry regulations affect profitability and market … stores in Sweden, we find that the average entry costs for small and large stores are 10 and 18 percent lower, respectively …, in markets with liberal compared with restrictive regulations. Counterfactual simulations show that lower entry costs in …
Persistent link: https://www.econbiz.de/10010699973
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 … similar across industrial countries, post entry performance differs markedly between Europe and the U.S., a potential …
Persistent link: https://www.econbiz.de/10005703134
In this paper we have attempted to examine aspects of the competitive selection process, firms’ entry, survival and … exit, in an important sector of Chinese manufacturing, looking in particular for changes resulting from the latest stage of …
Persistent link: https://www.econbiz.de/10005813014
a new class of trade models: the New New Trade Theory which accounts for firm heterogeneity and market entry costs. The …
Persistent link: https://www.econbiz.de/10008498440