Download now Free registration required
This paper presents an endogenous growth model, in which entry, exit, and growth are endogenously determined through the rational behavior of agents, to investigate the effects of growth-enhancing policies on the exit rate of firms, and on the unemployment rate as well. Unlike standard Schumpeterian growth models, the exit of firms in the authors' model is not simply the result of side effects of entry of newcomers with state-of-the-art technologies, but according to the literature of dynamic industry model, it occurs due to the fact that firms facing heterogeneous productivity shocks.
- Format: PDF
- Size: 119.8 KB