Entry and exit echoes

Boyan Jovanovic, Chung Yi Tse

    Research output: Contribution to journalArticle

    Abstract

    While aggregate data do not show the investment echoes predicted by vintage-capital models, echoes arise in rates of entry and exit of firms at the industry level. Moreover, industries where prices decline rapidly experience early 'shakeouts'. The relation emerges naturally in a vintage-capital model in which exit of firms sometimes accompanies the replacement of their capital, and in which a shakeout is the first replacement 'echo' of the capital created when the industry is born.

    Original languageEnglish (US)
    Pages (from-to)514-536
    Number of pages23
    JournalReview of Economic Dynamics
    Volume13
    Issue number3
    DOIs
    StatePublished - Jul 2010

    Fingerprint

    Industry
    Entry and exit
    Vintage capital models
    Replacement
    Exit
    Aggregate data
    Shakeout

    Keywords

    • Vintage capital

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Entry and exit echoes. / Jovanovic, Boyan; Tse, Chung Yi.

    In: Review of Economic Dynamics, Vol. 13, No. 3, 07.2010, p. 514-536.

    Research output: Contribution to journalArticle

    Jovanovic, B & Tse, CY 2010, 'Entry and exit echoes', Review of Economic Dynamics, vol. 13, no. 3, pp. 514-536. https://doi.org/10.1016/j.red.2009.07.004
    Jovanovic, Boyan ; Tse, Chung Yi. / Entry and exit echoes. In: Review of Economic Dynamics. 2010 ; Vol. 13, No. 3. pp. 514-536.
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