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

Listed author(s):
  • Manjón Antolín, Miguel C.

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. KEYWORDS: aggregation, industry dynamics, panel data, symmetry, simultaneity. JEL CLASSIFICATION: C33, C52, L60, L11

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File URL: http://hdl.handle.net/2072/1778
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Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/1778.

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Date of creation: 2004
Handle: RePEc:urv:wpaper:2072/1778
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