Entry, exit and profitability

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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 s...

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ژورنال

عنوان ژورنال: Managerial and Decision Economics

سال: 1984

ISSN: 0143-6570,1099-1468

DOI: 10.1002/mde.4090050106