An Intertemporal Model of Industrial Exit
AbstractA finite horizon model of industrial exit is developed. After an ini tial lag, most exits are by young firms. The duration of the lag is p ositively related to sunk entry costs, but not due to the fallacy of sunk costs. The conception of entry differs from previous research; a s a result, not all entrants are identical and firm size affects the rate of learning. On average, larger new firms last longer. Entrepren eurs in declining firms act more lazily as the firm declines. A numbe r of empirical observations about declining firms are organized by th e model. Copyright 1988, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by MIT Press in its journal Quarterly Journal of Economics.
Volume (Year): 103 (1988)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.