surplus. On average, we find a tendency towards negative effects on profits. This result is less likely in phases of low …

This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics … simultaneous equilibrium model of profits, entry and exit. We find that indeed entrants play an entrepreneurial function causing …

additional information contained in profits, which complements the information from wages and transitions typically used in … previous work. We identify the strength of sorting solely from a ranking of firms by profits. To discern the sign of sorting …