Technological Change, Entry and Stock Market Dynamics: An Analysis of Transition in a Monopolistic Economy
AbstractThis paper explores an equilibrium model for industry entry dynamics and technological change. We focus on the share valuation of firms in the transition as technology changes, and whether or not share prices are always increasing when technology improves. We find that there can be a U-shaped transition dynamic, so that an initial boom in share price is followed by a temporary fall in share price even though the underlying technology is improving.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 641.
Date of creation: 2002
Date of revision:
technology; share-price; entry; industry; dynamic.;
Other versions of this item:
- Bipasa Datta & Huw Dixon, . "Technological change, entry and stock market dynamics: an analysis of transition in a monopolistic economy," Discussion Papers 01/18, Department of Economics, University of York.
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marta Aloi & Huw D. Dixon, 2002.
"Entry Dynamics, Capacity Utilisation and Productivity in a Dynamic Open Economy,"
CESifo Working Paper Series
716, CESifo Group Munich.
- Marta Aloi & Huw Dixon, . "Entry Dynamics, Capacity Utilisation and Productivity in a Dynamic Open Economy," Discussion Papers 02/05, Department of Economics, University of York.
- Pedro Rui Mazeda Gil & Paulo Brito & Óscar Afonso, 2008. "A Model of Quality Ladders with Horizontal Entry," FEP Working Papers 296, Universidade do Porto, Faculdade de Economia do Porto.
- Brito, Paulo & Dixon, Huw, 2013.
"Fiscal policy, entry and capital accumulation: Hump-shaped responses,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 37(10), pages 2123-2155.
- Brito, Paulo & Dixon, Huw, 2012. "Fiscal policy, entry and capital accumulation: hump-shaped responses," Cardiff Economics Working Papers E2012/7, Cardiff University, Cardiff Business School, Economics Section.
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