We show that the stylized facts of the Firm Size Distribution (FSD) by age cohorts, as shown
in Cabral and Mata (2003), bind within 4-digit manufacturing industries in the UK and
Belgium. As in Klepper and Thompson (2006) ...
We develop a theoretical model of the dynamics of an industry over the business cycle. In the economy, both aggregate demand and the productivity of a firm's technology evolve stochastically. Each period, firms must choose ...
We study the dynamics of an industry subject to aggregate demand shocks where the productivity of a firm’s technology evolves stochastically over time. Each period, each firm, given the aggregate demand shock, the productivity ...