Entry, Exit and Investment-Specific Technical Change

Roberto Samaniego ()

PIER Working Paper Archive from Penn Institute for Economic Research, Department of Economics, University of Pennsylvania

Abstract: Across industries, this paper finds that the rate of investment-specific technical change (ISTC) is positively related to rates of entry and exit. This finding is consistent with industry dynamics along the balanced growth path of a general equilibrium, multi-industry model of the plant lifecycle, in which technology adoption is costly and the rate of ISTC varies across industries. Results are robust to allowing for structural change induced by technological progress. The model also generates lumpy investment as a result of technology adoption by incumbents.

Keywords: Entry; exit; turnover; investment-specific technical change; entry costs; vintage capital; embodied technical change; selection; obsolescence; structural change; lumpy investment. (search for similar items in EconPapers)
JEL-codes: L16 O33 O41 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2008-04-02
New Economics Papers: this item is included in nep-bec, nep-dge, nep-ent and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Entry, Exit, and Investment-Specific Technical Change (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pen:papers:08-013

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