are consistent with empirical evidence. First, if firms incur higher sunk costs for marketing, concentration and firm …

are consistent with empirical evidence. First, if firms incur higher sunk costs for marketing, concentration and firm …

, thus, the rate of productivity growth. In addition, R&D expenditures (a sunk cost) are one component of total fixed costs …

-driven economic growth. We contrast two canonical specifications of distribution costs, iceberg vs. per-unit, and characterize their … to manufacturing unit costs must be constant in the steady state. The iceberg cost delivers this property by assumption …. The per-unit distribution cost, instead, yields an endogenous structure of the costs of serving the market …

Collective dismissal costs are an important part of employment protection legislation (EPL) and make firms' exit more … costly. We show in a model with step-by-step innovations that dismissal costs spur innovation if product markets are not too … to innovate. But dismissal costs decrease the absolute value of firms and induce exit. These opposite effects and their …

flow of cost-reducing (incremental) innovations that increase factor productivity, reduce production costs, and allow firms …