Interdependent Search and Industry Dynamics: on Ericson and Pakes (1995)
Yuri (Yuriy) Kaniovski (Kaniovskyi) ()
Working Papers from International Institute for Applied Systems Analysis
Abstract:
This argues about a central analytical inconsistency of Ericson and Pakes (1995). Notwithstanding the explicit claims of the article, the formal hypotheses employed there imply that the firm's investments do not affect both the evolution of this firm and the dynamics of the whole industry.
Date: 1998-08
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