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

M.C. Manjon

    Research output: Contribution to journalArticleScientificpeer-review

    11 Citations (Scopus)


    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
    Issue number2
    Publication statusPublished - 2010


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