Stylized Facts in Industrial Dynamics: Exit, Productivity, Income

Part of the New Economic Windows book series (NEW)


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.


Gross Domestic Product Business Cycle Stylize Fact Duration Dependence Bankrupt Firm 
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  1. 4.
    See inter alia Hulten et al. (2001) and Kruger (2003).Google Scholar
  2. 7.
    See Lee et al. (1998), for similar findings about the GDP and company growth rates.Google Scholar
  3. 8.
    Interesting reviews are e.g. Parente and Prescott (1993) and Jones (1997).Google Scholar
  4. 9.
    For an example of work very close in spirit to ours, see Sinclair (2001).Google Scholar
  5. 12.
    See Aoki 1996 for an introduction to the Fokker-Plank equation.Google Scholar
  6. 13.
    See e.g. Dinopoulos and Thompson (1998) and Segerstrom (1998). Jones (1997) surveys the topic.Google Scholar
  7. 14.
    Think, e.g., to the multi-sector Real Business Cycle model of Long and Plosser (1983).Google Scholar
  8. 15.
    As a matter of example, the models by Durlauf (1996) and Aoki (1998).Google Scholar
  9. 16.
    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.Google Scholar
  10. 17.
    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).Google Scholar

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© Springer-Verlag Italia 2008

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