) on business services profitability and location choice. We apply a semiparametric Poisson sorting model allowing for firm …, not necessarily business services firms, so diversity is negatively related to location decisions. Almost all firms either …

) on business services profitability and location choice. We apply a semiparametric Poisson sorting model allowing for firm …, not necessarily business services firms, so diversity is negatively related to location decisions. Almost all firms either …

by both high entry and high exit rates. …

This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics …, to discriminate between three aspects of industry dynamics: the effect of entry and exit on market equilibrium, duration … simultaneous equilibrium model of profits, entry and exit. We find that indeed entrants play an entrepreneurial function causing …

Entry requires external finance, especially for less wealthy entrepreneurs, so poor investor protection limits … voters. In a broad cross-section of countries and industries, we find that (i) entry rates and the total number of producers … accountable political institutions have better investor protection and lower entry costs. We also find that investor protection is …