Please use this identifier to cite or link to this item: http://arl.liuc.it/dspace/handle/2468/5859
Title: Firm entry and aggregate efficiency growth: an optimal dynamic: program of entry and RD investment
Authors: Raies, Asma
Issue Date: 2013
Publisher: European Association for Comparative Economic Studies (EACES)
Università Carlo Cattaneo - LIUC
Bibliographic citation: Raies Asma (2013), Firm entry and aggregate efficiency growth: an optimal dynamic: program of entry and RD investment. In: The European Journal of Comparative Economics, vol. 10, n. 3, 2013, p. 355-376. E-ISSN 1824-2979.
Abstract: The effect of entry on the aggregate efficiency growth is still theoretically and empirically unresolved. Many studies focused on this effect in short and long-run, without considering the dynamic transition and how do entry affect the convergence of the industrytoward its long-run equilibrium? This paper aims to provide an answer and to fill this gap by employingoptimal control principles. Our model exhibits saddlepath stability and shows that the effect of entry and entry liberalizing policy (reducing the entry cost) on the aggregate efficiency growth may be positive, negative or nil depending on the industry's initial characteristics (size and R and D). This theoretical result can justify the inconclusive current empirical evidence.
URI: http://arl.liuc.it/dspace/handle/2468/5859
Journal/Book: The European journal of comparative economics
Appears in Collections:EJCE

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