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Entry, Exit, Embodied Technology, and Business Cycles

Campbell, Jeffrey R. - 2021

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...

Persistent link: https://www.econbiz.de/10013233858

The Failure of Free Entry

Gutiérrez Gallardo, Germán; Philippon, Thomas - 2022

We study the entry and exit of firms across U.S. industries over the past 40 years. The elasticity of entry with respect to Tobin’s Q was positive and significant until the late 1990s but declined to zero afterwards. Standard macroeconomic models suggest two potential explanations: rising...

Persistent link: https://www.econbiz.de/10014105633

Does the Profit Motive Make Jack Nimble? Ownership Form and the Evolution of the U.S. Hospital Industry

Chakravarty, Sujoy; Gaynor, Martin; Klepper, Steven; … - 2021

We examine the evolving structure of the U.S. hospital industry since 1970, focusing on how ownership form influences entry and exit behavior. We develop theoretical predictions based on the model of Lakdawalla and Philipson, in which for-profit and not-for-profit hospitals differ regarding...

Persistent link: https://www.econbiz.de/10013221974

Nominal Exchange Rate Patterns : Correlationswith Entry, Exit, and Invesment in U.S. Industry

Goldberg, Linda S. - 2021

and sectoral investment in new plant and equipment. Short term trend depreciations of the dollar are associated with … reallocation of resources across sectors, while longer term trend depreciations are associated with investment expansions in many … sectors of industry. Persistent exchange rate volatility is strongly associated with investment contractions, with this effect …

Persistent link: https://www.econbiz.de/10013227214

Product Choice and Product Switching

Bernard, Andrew B.; Redding, Stephen; Schott, Peter K. - 2021

This paper develops a model of endogenous product selection by firms. The theory is motivated by new evidence we present on the importance of product switching by U.S. manufacturers. Two-thirds of continuing firms change their product mix every five years, and product switches involve more than...

Persistent link: https://www.econbiz.de/10013235862

A Unified Theory of Firm Selection and Growth

Arkolakis, Costas - 2011

This paper studies the effects of marketing choice to firm growth. I assume that firm-level growth is the result of idiosyncratic productivity improvements with continuous arrival of new potential producers. A firm enters a market if it is profitable to incur the marginal cost to reach the first...

Persistent link: https://www.econbiz.de/10013119036

Entry, Exit, and the Determinants of Market Structure

Dunne, Timothy - 2009

Market structure is determined by the entry and exit decisions of individual producers. These decisions are driven by expectations of future profits which, in turn, depend on the nature of competition within the market. In this paper we estimate a dynamic, structural model of entry and exit in...

Persistent link: https://www.econbiz.de/10013156542

Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit

Melitz, Marc J. - 2014

In this paper, we propose an extension of the productivity decomposition method developed by Olley & Pakes (1996). This extension provides an accounting for the contributions of both firm entry and exit to aggregate productivity changes. It breaks down the contribution of surviving firms into a...

Persistent link: https://www.econbiz.de/10013065931

Entry and Exit in OTC Derivatives Markets

Atkeson, Andrew - 2014

We develop a parsimonious model to study the equilibrium and socially optimal decisions of banks to enter, trade in, and possibly exit, an OTC market. Although we endow all banks with the same trading technology, banks' optimal entry and trading decisions endogenously lead to a realistic market...

Persistent link: https://www.econbiz.de/10013048057

Does the Use of Worker Flows Improve the Analysis of Establishment Turnover? Evidence from German Administrative Data

Hethey-Maier, Tanja - 2014

Administrative datasets provide an excellent source for detailed analysis of establishment entries and exits on a fine and disaggregate level. However, administrative datasets are not without problems: restructuring and relabeling of firms is often poorly measured and can create large biases....

Persistent link: https://www.econbiz.de/10013061776