Technological Change, Entry and Stock Market Dynamics: An Analysis of Transition in a Monopolistic Economy

Bipasa Datta and Huw Dixon

No 641, CESifo Working Paper Series from CESifo

Abstract: This paper explores an equilibrium model for industry entry dynamics and technological change. We focus on the share valuation of firms in the transition as technology changes, and whether or not share prices are always increasing when technology improves. We find that there can be a U-shaped transition dynamic, so that an initial boom in share price is followed by a temporary fall in share price even though the underlying technology is improving.

Keywords: technology; share-price; entry; industry; dynamic. (search for similar items in EconPapers)
JEL-codes: D40 D92 L10 O30 (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
https://www.cesifo.org/DocDL/641.PDF (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:ces:ceswps:_641

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().