TY  - UNPB
ID  - mpra4032
N2  - In this paper I ask whether a model of ¯rm capital accumulation with entry
and exit calibrated to match the investment regularities of U.S. establishments
is capable of generating the dependence of ¯rm dynamics on size and age. Firms
face uncertainty in the form of idiosyncratic productivity shocks and are subject to
non-convex capital adjustment costs. I solve for the stationary equilibrium to show
that the model can account for the simultaneous dependence of industry dynamics
on size (once we condition on age) and on age (once we condition on size).
A1  - D'Erasmo, Pablo
UR  - https://mpra.ub.uni-muenchen.de/4032/
KW  - firm dynamics; investment; financial constraints
AV  - public
EP  - 33
TI  - Investment and firm dynamics
N1  - Unpublished
Y1  - 2006/03/01/
ER  -