The Macroeconomic Dynamics of Generations of Firms

Masashige Hamano and Toshihiro Okubo

No 2307, Working Papers from Waseda University, Faculty of Political Science and Economics

Abstract: This paper investigates the dynamics specific to various firm cohorts and their implications at an aggregate level. Utilizing a structural model that incorporates entry, exit, and selection of heterogeneous firms, we demonstrate that the dynamics of firms from each generation, and thus the historical economic landscape, can be reconstructed. Moreover, we estimate generation-specific parameters in both demand and supply within our theoretical model, using Japanese data. Our findings reveal that fixed operational costs for firms established immediately after the Second World War are relatively lower compared to subsequent generations of firms, resulting in an increased market congestion for these early-born enterprises.

Keywords: Heterogeneity; fixed cost; business cycles (search for similar items in EconPapers)
JEL-codes: D24 E23 E32 L11 L60 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2023-12
New Economics Papers: this item is included in nep-dge, nep-ent, nep-his and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.waseda.jp/fpse/winpec/assets/uploads/2023/12/No.E2307_WP_E.pdf First version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wap:wpaper:2307

Access Statistics for this paper

More papers in Working Papers from Waseda University, Faculty of Political Science and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Haruko Noguchi ().