A Structural Empirical Model of Firm Growth, Learning, and Survival

Jaap Abbring and Jeffrey Campbell

No 9712, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a structural model of firm growth, learning, and survival and consider its identification and estimation. In the model, entrepreneurs have private and possibly error-ridden observations of persistent and transitory shocks to profit. We demonstrate that the model's parameters can be recovered from public observations of sales and survival, and we estimate them using monthly data from new bars in Texas. We find that entrepreneurs observe profit's persistent component without error. In this sense, their information is substantially superior to the public's.

JEL-codes: C34 C35 (search for similar items in EconPapers)
Date: 2003-05
New Economics Papers: this item is included in nep-ent
Note: EFG IO
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Citations: View citations in EconPapers (9)

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Related works:
Working Paper: A structural empirical model of firm growth, learning, and survival (2003)
Working Paper: A Structural Empirical Model of Firm Growth, Learning, and Survival (2003)
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