Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper estimates a dynamic, structural model of entry and exit in an oligopolistic industry and uses it to quantify the determinants of market structure and long-run firm values for two U.S. service industries, dentists and chiropractors. Entry costs faced by potential entrants, fixed costs faced by incumbent producers, and the toughness of short-run price competition are all found to be important determinants of long-run firm values, firm turnover, and market structure. Estimates for the dentist industry allow the entry cost to differ for geographic markets that were designated as Health Professional Shortage Areas and in which entry was subsidized. The estimated mean entry cost is 11 percent lower in these markets. Using simulations, we compare entry-cost versus fixed-cost subsidies and find that entry-cost subsidies are less expensive per additional firm. Terms of use: Documents inJEL classification: L11, L13, L84
This paper documents and explains the recent rise of "big-box" general merchandisers. Data from the Census of Retail Trade for show that general-merchandise chains grew much faster than specialist retail chains, and that general merchandisers that added the most stores also made the biggest increases to their product offerings. We explain these facts with a stylized model in which a retailer's scale economies interact with consumer gains from one-stop shopping to generate a complementarity between a retailer's scale and scope.
1.A related argument is that recent evidence suggests that micro investment is a highly nonlinear function of fundamentals. Prima facie evidence for this is that investment at the micro level is highly skewed to the right and has a mass around zero and a fat right tail. It is unlikely that the distribution of shocks affecting businesses has this same shape (indeed, measures of the distribution of shocks at the micro level suggest that the distribution is approximately normal). The nonlinear nature of micro investment behavior implies that the response of aggregate investment dynamics to aggregate shocks will be complex and depend upon the crosssectional distribution of the circumstances faced across firms (see, e.g., Caballero, Engel, and Haltiwanger 1995). Viewed from this perspective, micro/macro consistency is fundamentally important for understanding the aggregate response of the economy to aggregate shocks. 548Becker, Haltiwanger, Jarmin, Klimek, and Wilson 4. The deterioration of the ASM in terms of capital measurement is unfortunate, as the expenditures and retirements/sales data have been used at the micro level successfully to analyze the capital adjustment processes across businesses (see, e.g., Caballero, Engel, andHaltiwanger 1995 andHaltiwanger 2000). The type of analysis in these studies is no longer feasible.5. See Doms, Jarmin, and Klimek (2004) for more detailed descriptions of the investment data and sampling units in the AES. 6. A pilot version of ACES was in the field prior to 1993. 554Becker, Haltiwanger, Jarmin, Klimek, and Wilson 12. Unfortunately, the version of the FRTW that makes use of the 1997 CFT was not released in time for use in our study.
We examine the relationship between investments in information technology (IT) and retail firm performance. We use untapped firm and establishment micro data from the Censuses of Retail Trade and the Assets and Expenditures Survey. We show that large firms account for most retail IT investment, employment, and establishment growth. We find evidence of a significant relationship between IT investment intensity and productivity growth.Information technology, Retail, Productivity, Establishment growth,
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