This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics. The benefit of our model is twofold. First, to discriminate between entrants’ role of performing the entrepreneurial function of creating disequilibrium and the conventional...

This paper examines the relationship between firm births and job creation in Great Britain. We use a new data set for 60 British regions, covering the whole of Great Britain, between 1980 and 1998. The relationship between new-firm startups and employment growth has previously been examined...

New firm startups and employment changes in Great Britain are examined as a result of general interest in the fact that, for more than 20 years, national and subnational governments there have tried to increase business startup rates to improve wealth and job creation. It is believed that there...