search query: @author Das, S. P. / total: 11
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| Author: | Das, S. Das, S. P. |
| Title: | Dynamics of entry and exit of firms in the presence of entry adjustment costs |
| Journal: | International Journal of Industrial Organization
1997 : APR, VOL. 15:2, p. 217-241 |
| Index terms: | SUNK COSTS INDUSTRIES DEVELOPMENT |
| Language: | eng |
| Abstract: | This paper presents a simple model of industry dynamics with entry adjustment costs. These costs imply a non-instantaneous adjustment path to the steady state, so that the model permits the short-run and long-run characterization of industry dynamics in a single framework. The type of the steady state depends on the fixed cost of entry as well as entry adjustment costs. The short-run dynamics exhibits non-monotonicity if persistence in efficiency over time is not too high. The model is consistent with the empirical observations that the total number of firms and net entry follow non-monotonic paths and entry and exit are positively correlated over time. |
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