Becoming obsolete: Bankruptcy through technological progress

Konferenzbeitrag

This paper studies product obsolescence, the entry and exit of firms, and the evolution of firm size as foundation of endogenous economic growth. I develop a dynamic general equilibrium model with heterogenous firms to analyze firm behavior in an economic environment that is characterized by a growing knowledge base. It uses a simple mechanism of knowledge diffusion that induces growth of the general knowledge base. The growing knowledge base forces small firms using the least knowledge intensive production processes to leave the economy, since competition from new entrants is tougher, since they developed their products starting from a larger knowledge base. Exiting firms are found to be smaller and less productive than survivors. Another main insight of the model is the evolution of a cohort's firm size distribution.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft: Lektionen aus der Krise - Session: Endogenous Growth Theory ; No. A17-V3

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Growth and Aggregate Productivity: General ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
• Thema: economic growth ; product obsolescence ; firm dynamics ; firm size distribution

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kleinert, Barbara
• Ereignis: Veröffentlichung
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/49163
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ