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