Firm size and short-term dynamics in aggreagate entry and exit

M.C. Manjon

    Research output: Contribution to journalArticleScientificpeer-review

    Abstract

    The interdependence between the sectorial rates of entry and exit is an established “stylised fact” in the research on industry dynamics. This paper argues that the size of firms and the reaction-adjustment period are important conditions that are missing from the empirical models typically used in this literature. I illustrate the effects of this omission on a panel of Spanish manufacturing industries. Estimates from error-component systems of equations provide evidence of a conical revolving door phenomenon and of dynamic partial adjustments in the replacement–displacement of firms.
    Original languageEnglish
    Pages (from-to)464-476
    JournalInternational Journal of Industrial Organization
    Volume28
    Issue number2
    Publication statusPublished - 2010

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    Industry
    Entry and exit
    Firm size
    Partial adjustment
    Interdependence
    Manufacturing industries
    Stylized facts
    Empirical model
    Industry dynamics
    Error components

    Cite this

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    title = "Firm size and short-term dynamics in aggreagate entry and exit",
    abstract = "The interdependence between the sectorial rates of entry and exit is an established “stylised fact” in the research on industry dynamics. This paper argues that the size of firms and the reaction-adjustment period are important conditions that are missing from the empirical models typically used in this literature. I illustrate the effects of this omission on a panel of Spanish manufacturing industries. Estimates from error-component systems of equations provide evidence of a conical revolving door phenomenon and of dynamic partial adjustments in the replacement–displacement of firms.",
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    Firm size and short-term dynamics in aggreagate entry and exit. / Manjon, M.C.

    In: International Journal of Industrial Organization, Vol. 28, No. 2, 2010, p. 464-476.

    Research output: Contribution to journalArticleScientificpeer-review

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    N2 - The interdependence between the sectorial rates of entry and exit is an established “stylised fact” in the research on industry dynamics. This paper argues that the size of firms and the reaction-adjustment period are important conditions that are missing from the empirical models typically used in this literature. I illustrate the effects of this omission on a panel of Spanish manufacturing industries. Estimates from error-component systems of equations provide evidence of a conical revolving door phenomenon and of dynamic partial adjustments in the replacement–displacement of firms.

    AB - The interdependence between the sectorial rates of entry and exit is an established “stylised fact” in the research on industry dynamics. This paper argues that the size of firms and the reaction-adjustment period are important conditions that are missing from the empirical models typically used in this literature. I illustrate the effects of this omission on a panel of Spanish manufacturing industries. Estimates from error-component systems of equations provide evidence of a conical revolving door phenomenon and of dynamic partial adjustments in the replacement–displacement of firms.

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    JF - International Journal of Industrial Organization

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