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 Department of Economics, University of York in its series Discussion Papers with number 01/18.
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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Technology; share-price; entry; industry; dynamic.;
Other versions of this item:
- Bipasa Datta & Huw D. Dixon, 2002. "Technological Change, Entry and Stock Market Dynamics: An Analysis of Transition in a Monopolistic Economy," CESifo Working Paper Series 641, CESifo Group Munich.
- D4 - Microeconomics - - Market Structure and Pricing
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-01-22 (All new papers)
- NEP-ENT-2002-01-05 (Entrepreneurship)
- NEP-TID-2002-01-22 (Technology & Industrial Dynamics)
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 Dixon, .
"Entry Dynamics, Capacity Utilisation and Productivity in a Dynamic Open Economy,"
02/05, Department of Economics, University of York.
- 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.
- Jakob B. Madsen & E. Philip Davis, 2004.
"Equity Prices, Productivity Growth, and the 'New Economy',"
EPRU Working Paper Series
04-05, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Jakob B Madsen & E Philip Davis, 2006. "Equity Prices, Productivity Growth and 'The New Economy'," Economic Journal, Royal Economic Society, vol. 116(513), pages 791-811, 07.
- Jakob B. Madsen & E. Philip Davis, 2004. "Equity Prices, Productivity Growth and 'The New Economy," FRU Working Papers 2004/11, University of Copenhagen. Department of Economics. Finance Research Unit.
- Jakob B Madsen & E Philip Davis, 2003. "Equity Prices, Productivity Growth, And ‘The New Economy’," Public Policy Discussion Papers 03-04, Economics and Finance Section, School of Social Sciences, Brunel University.
- Jakob B Madsen & E Philip Davis, 2003. "Equity Prices, Productivity Growth, And ‘The New Economy’," Economics and Finance Discussion Papers 03-04, Economics and Finance Section, School of Social Sciences, Brunel University.
- 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.
- 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.
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