Reference : Endogenous Firm creation and destruction over the business cycle
E-prints/Working papers : Already available on another site
Business & economic sciences : Microeconomics
Endogenous Firm creation and destruction over the business cycle
Hamano, Masashige mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
[en] entry and exit ; firm heterogeneity ; the Schumpeterian destruction ; business cycles
[en] This paper revisits Schumpeterian destruction in a DSGE model based on monopolistic
competition. Firms enter the market through a free entry condition and exit endogenously
depending on their specific productivity level. The mechanism of endogenous destruction
among heterogeneous firms is based on the probabilistic argument discussed in Melitz
(2003). The models in the paper are successful in reproducing observed business cycle
patterns for creation and destruction and other major economic variables. The models
also feature typical characteristics of Schumpeterian economies as found in literature.
Researchers ; Professionals ; Students

File(s) associated to this reference

Fulltext file(s):

Open access
2013-04 - Endogenous firm creation and destruction over the business cycle.pdfAuthor postprint1.21 MBView/Open

Bookmark and Share SFX Query

All documents in ORBilu are protected by a user license.