A Theory of Entry and Exit with Embodied Rate of Technical Change

Roberto Samaniego ()

No 765, 2006 Meeting Papers from Society for Economic Dynamics

Abstract: The paper presents a vintage capital model that is consistent with the the relationship between the rate of embodied technical change and the rate of entry and exit across industries. In the model, the costs imposed by the regulation of entry may bias the sectoral composition of an economy towards industries in which the rate of technical change is low -- an effect termed technological skew. This prediction matches the empirical relationship between institutional entry costs and several indicators of sectoral composition across industrialized economies

Keywords: Entry; exit; embodied technical change; regulation of entry; sectoral composition; technological skew; information technology; services. (search for similar items in EconPapers)
JEL-codes: H25 L63 O33 O38 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-com, nep-ent, nep-ino, nep-mic and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:red:sed006:765

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