Do firm entry and exit play a major role in shaping aggregate dynamics? Our answer is yes. Entry and exit propagate the effects of aggregate shocks. In turn, this results in greater persistence and unconditional variation of aggregate time-series. These are features of the equilibrium allocation...

Introduction -- Normative versus positive analysis in the history of the theory of production -- The division of labour and the theory of the firm -- Proto-neoclassicals and the theory of production -- Appendix: a very brief history of perfect competition -- The representative firm -- The...

How important are firm entry and exit in shaping aggregate dynamics? We address this question by characterizing the equilibrium allocation in Hopenhayn (1992)’s model of equilibrium industry dynamics, amended to allow for investment in physical capital and aggregate fluctuations. We find that...

Do firm entry and exit play a major role in shaping aggregate dynamics? Our answer is yes. Entry and exit propagate the effects of aggregate shocks. In turn, this results in greater persistence and unconditional variation of aggregate time-series. These are features of the equilibrium allocation...

1. What we know and what we don't know about the firm -- 2. The extent of the market process -- 3. The 'specialisation deadlock' -- 4. Entrepreneurship and integration -- 5. Authority and hierarchy -- 6. The volatile character of the firm -- 7. Financing, ownership, and boundaries of the firm --...