The view that the strength of the dollar in the early 1980s was associated with persistent restructuring of United States industry is supported by correlations between exchange rate patterns and data on business formation, business failure and sectoral investment in new plant and equipment....

Using data from Chile and Korea, we find that a larger fraction of aggregate productivity growth is due to firm entry and exit during fast-growth episodes compared to slow-growth episodes. Studies of other countries confirm this empirical relationship. We develop a model of endogenous firm entry...

There has been few studies on competition and entry of firms in local service industries. I apply Bresnahan and Reiss (1991)'s entry threshold model to study competition in the U.S. bar industry, by linking market size and the number of bars in each local market. I find that entry of each...

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...

Entry and exit are important phenomena. This paper reviews the evidence on the size of this process and its contribution to productivity and innovation. It then develops a detailed portrait of the characteristics of new firms that survive and those that fail. In doing so, it examines the type of...