IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Slow Growth of New Plants: Learning about Demand?

  • Lucia Foster
  • John C. Haltiwanger
  • Chad Syverson

It is well known that new businesses are typically much smaller than their established industry competitors, and that this size gap closes slowly. We show that even in commodity-like product markets, these patterns do not reflect productivity gaps, but rather differences in demand-side fundamentals. We document and explore patterns in plants' idiosyncratic demand levels by estimating a dynamic model of plant expansion in the presence of a demand accumulation process (e.g., building a customer base). We find active accumulation driven by plants' past production decisions quantitatively dominates passive demand accumulation, and that within-firm spillovers affect demand levels but not growth.

If 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.

File URL: http://www.nber.org/papers/w17853.pdf
Download Restriction: no

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17853.

as
in new window

Length:
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:nbr:nberwo:17853
Note: EFG IO PR
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Web page: http://www.nber.orgEmail:


More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Anonymous, 2006. "Washington Scene," Choices, Agricultural and Applied Economics Association, vol. 21(4).
  2. Gilchrist, Simon & Himmelberg, Charles P., 1995. "Evidence on the role of cash flow for investment," Journal of Monetary Economics, Elsevier, vol. 36(3), pages 541-572, December.
  3. Sanghamitra Das & Mark J. Roberts & James R. Tybout, 2001. "Market Entry Costs, Producer Heterogeneity, and Export Dynamics," NBER Working Papers 8629, National Bureau of Economic Research, Inc.
  4. Anonymous, 2006. "Editorial Information," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(01), March.
  5. Anonymous, 2006. "Cover Page and Contents," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(02), August.
  6. Kap-Soo Oh, 2006. "Promoting the Asian bond market," BIS Papers chapters, in: Bank for International Settlements (ed.), Asian bond markets: issues and prospects, volume 30, pages 243-245 Bank for International Settlements.
  7. C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
  8. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-83, August.
  9. anonymous, 2006. "Community profile: Arizona," Community Investments, Federal Reserve Bank of San Francisco, issue Oct, pages 9.
  10. Zhu Wang, 2006. "Online banking comes of age," TEN, Federal Reserve Bank of Kansas City, issue Win, pages 22-25.
  11. Anonymous, 2006. "Front Materials," Choices, Agricultural and Applied Economics Association, vol. 21(4).
  12. Anonymous, 2006. "Inside Front Cover," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
  13. Anonymous, 2006. "Front Materials," Choices, Agricultural and Applied Economics Association, vol. 21(2).
  14. Anonymous, 2006. "Contents and Cover Page," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 34(2).
  15. Marcus Asplund & Volker Nocke, 2003. "Firm Turnover in Imperfectly Competitive Markets," PIER Working Paper Archive 03-010, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  16. Anonymous, 2006. "Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(01), March.
  17. Anonymous, 2006. "Contents Page," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
  18. anonymous, 2006. "Call for Nominations," Management Science, INFORMS, vol. 52(3), pages 472-472, March.
  19. Anonymous, 2006. "Front Material," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
  20. Anonymous, 2006. "Contents Page," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
  21. Russell W. Cooper & John C. Haltiwanger, 2000. "On the Nature of Capital Adjustment Costs," NBER Working Papers 7925, National Bureau of Economic Research, Inc.
  22. Anonymous, 2006. "Cover and Contents Page," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(03), November.
  23. Anonymous, 2006. "Contents and Cover Page," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 34(1).
  24. Fishman, Arthur & Rob, Rafael, 2003. "Consumer inertia, firm growth and industry dynamics," Journal of Economic Theory, Elsevier, vol. 109(1), pages 24-38, March.
  25. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
  26. Anonymous, 2006. "Cover and Contents Pages," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(01), April.
  27. Anonymous, 2006. "Front Materials," Western Economics Forum, Western Agricultural Economics Association, vol. 5(02).
  28. Anonymous, 2006. "Cover And Contents Pages," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
  29. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
  30. Anonymous, 2006. "Inside Front Cover," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
  31. anonymous, 2006. "Georgia mirrors the nation," EconSouth, Federal Reserve Bank of Atlanta, issue Q 4.
  32. Eric J. Bartelsman & Mark Doms, 2000. "Understanding productivity: lessons from longitudinal microdata," Finance and Economics Discussion Series 2000-19, Board of Governors of the Federal Reserve System (U.S.).
  33. Anonymous, 2006. "Front Cover," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
  34. Anonymous, 2006. "Front Materials," Western Economics Forum, Western Agricultural Economics Association, vol. 5(01).
  35. Anonymous, 2006. "Contents Pages," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
  36. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, volume 1, number 5474, March.
  37. Anonymous, 2006. "Washington Scene," Choices, Agricultural and Applied Economics Association, vol. 21(2).
  38. Wang, Hung-Jen, 2006. "Stochastic frontier models," MPRA Paper 31079, University Library of Munich, Germany.
  39. Anonymous, 2006. "Front Cover," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
  40. Hidvegi, Zoltan & Wang, Wenli & Whinston, Andrew B., 2006. "Buy-price English auction," Journal of Economic Theory, Elsevier, vol. 129(1), pages 31-56, July.
  41. Anonymous, 2006. "Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(02), July.
  42. Anonymous, 2006. "Front Materials," Choices, Agricultural and Applied Economics Association, vol. 21(3).
  43. Anonymous, 2006. "Cover and Table of Contents," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:17853. See general 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: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.