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Firm Size and Short-Term Dynamics in Aggregate Entry and Exit

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  • Manjon, M.C.

    (Tilburg University, Center for Economic Research)

Abstract

Much of the research on industry dynamics focuses on the interdependence between the sectorial rates of entry and exit.This paper argues that the size of firms and the reaction-adjustment period are important conditions missed in this literature.I illustrate the effects of this omission using data from the Spanish manufacturing industries between 1994 and 2001.Estimates from systems of equations models provide evidence of a conical revolving door phenomenon and of partial adjustments in the replacement-displacement of large firms.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2004-2.

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Date of creation: 2004
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Handle: RePEc:dgr:kubcen:20042

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Cited by:
  1. Ricjard Kneller & Danny McGowan, . "Tax Policy and Firm Entry and Exit Dynamics: Evidence from OECD Countries," Discussion Papers 12/01, University of Nottingham, School of Economics.
  2. Andersson, Martin & Braunerhjelm, Pontus & Thulin, Per, 2011. "Creative Destruction and Productivity – entrepreneurship by type, sector and sequence," Working Paper Series in Economics and Institutions of Innovation 256, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  3. Richard Kneller & Danny McGowan, . "Entrepreneurship Dynamics, Market Size and Fiscal Policy," Discussion Papers 11/07, University of Nottingham, School of Economics.
  4. J. Arauzo & M. Manjón & M. Martín & A. Segarra, 2007. "Regional and Sector-specific Determinants of Industry Dynamics and the Displacement–replacement Effects," Empirica, Springer, vol. 34(2), pages 89-115, April.
  5. Prieger, James, 2005. "The Impact of Cost Changes on Industry Dynamics," Working Papers 05-1, University of California at Davis, Department of Economics.
  6. Kostas Tsekouras & Efthalia Dimara & Dimitris Skuras & Dimitris Tzelepis, 2009. "Back to basics: The Comanor–Wilson MES index revisited," Small Business Economics, Springer, vol. 32(1), pages 111-120, January.

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