Abstract
In principle, a firm can go out of business as an independent unit for three reasons: i) voluntary exit, due for example to the prospective of unsustainable reduction of profitability; ii) merger with another firm or acquisition by another firm; iii) bankruptcy due to the inability of a firm to pay its financial obligations as they mature.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
See inter alia Hulten et al. (2001) and Kruger (2003).
See Lee et al. (1998), for similar findings about the GDP and company growth rates.
Interesting reviews are e.g. Parente and Prescott (1993) and Jones (1997).
For an example of work very close in spirit to ours, see Sinclair (2001).
See Aoki 1996 for an introduction to the Fokker-Plank equation.
See e.g. Dinopoulos and Thompson (1998) and Segerstrom (1998). Jones (1997) surveys the topic.
Think, e.g., to the multi-sector Real Business Cycle model of Long and Plosser (1983).
As a matter of example, the models by Durlauf (1996) and Aoki (1998).
The concept of steepness we use has a geometrical meaning and it is therefore different from the one in Sichel (1993), where this same term has been used to define a property of asymmetric business fluctuations.
This measure corresponds to the slope of the hypotenuse of the triangle approximation to the cumulative movement during a business cycle phase as discussed in Harding and Pagan (2002).
Rights and permissions
Copyright information
© 2008 Springer-Verlag Italia
About this chapter
Cite this chapter
(2008). Stylized Facts in Industrial Dynamics: Exit, Productivity, Income. In: Emergent Macroeconomics. New Economic Windows. Springer, Milano. https://doi.org/10.1007/978-88-470-0725-3_3
Download citation
DOI: https://doi.org/10.1007/978-88-470-0725-3_3
Publisher Name: Springer, Milano
Print ISBN: 978-88-470-0724-6
Online ISBN: 978-88-470-0725-3
eBook Packages: Physics and AstronomyPhysics and Astronomy (R0)