This paper establishes the existence and uniqueness of an intuitively-refined Markov-Perfect Equilibrium in a richly-specified dynamic duopoly model of entry and exit. We develop an algorithm that computes it very quickly, which makes the model useful for experiments that use many parameter...

This paper studies the entry and exit of U.S. manufacturing plants over the business cycle and compares the results with those from a vintage capital model augmented to reproduce observed features of the plant life cycle. Looking at the entry and exit of plants provides new evidence supporting...

This paper studies the entry and exit of U.S. manufacturing plants over the business cycle and compares the results with those from a vintage capital model augmented to reproduce observed features of the plant life cycle. Looking at the entry and exit of plants provides new evidence supporting...

We develop a theoretical model of the dynamics of an industry over the business cycle. We characterize the intertemporal evolution of the distribution of firms, where firms are distinguished by their capital in place and the productivity of their technology. We contrast investment and exit...

This paper analyses an open economy Ramsey model with an endogenous labour supply without capital. The technology defines an optimal firm size. Changes to the number of firms is subject to adjustment costs, so that the entry dynamics is determined endogenously. We find that there is a short run...