Entry, exit and mergers: a competitive equilibrium model with financial frictions

This paper examines a dynamic stochastic model of a competitive industry with heterogeneous firms that allows for entry, exit and mergers of firms in equilibrium. The model we build is an extension of a modified version of Jovanovic and Rousseau's (2002) model that introduces financial friction...

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Autor principal: Fossati, Román
Otros Autores: Kawamura, Enrique
Formato: Tesis Tesis de maestria
Lenguaje:Inglés
Publicado: 2005
Materias:
Ciencias Económicas
entry and exit; financial frictions; mergers; technological change
Economía
Operaciones financieras
Equilibrio económico
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/3346
https://doi.org/10.35537/10915/3346
http://www.depeco.econo.unlp.edu.ar/maestria/tesis/037-tesis-fossati.pdf
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-3346
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
entry and exit; financial frictions; mergers; technological change
Economía
Operaciones financieras
Equilibrio económico
spellingShingle Ciencias Económicas
entry and exit; financial frictions; mergers; technological change
Economía
Operaciones financieras
Equilibrio económico
Fossati, Román
Entry, exit and mergers: a competitive equilibrium model with financial frictions
topic_facet Ciencias Económicas
entry and exit; financial frictions; mergers; technological change
Economía
Operaciones financieras
Equilibrio económico
description This paper examines a dynamic stochastic model of a competitive industry with heterogeneous firms that allows for entry, exit and mergers of firms in equilibrium. The model we build is an extension of a modified version of Jovanovic and Rousseau's (2002) model that introduces financial frictions, describes the market for corporate control and endogenizes its equilibrium price, and develops a stationary equilibrium à la Hopenhayn (1992). It provides a theoretical framework within which to study factors affecting variables such as entry, exit and investment through direct unbundled capital good purchase and mergers. This work contributes to the literature by suggesting another explanation to many empirical regularities and describing one more mechanism through which aggregate liquidity shocks may affect merger activity. The results suggest that due to asymmetric information about entrepreneur's survival probabilities aggregate liquidity shocks may contribute to codetermine the turnover rate of firms and investment levels through mergers.
author2 Kawamura, Enrique
author_facet Kawamura, Enrique
Fossati, Román
format Tesis
Tesis de maestria
author Fossati, Román
author_sort Fossati, Román
title Entry, exit and mergers: a competitive equilibrium model with financial frictions
title_short Entry, exit and mergers: a competitive equilibrium model with financial frictions
title_full Entry, exit and mergers: a competitive equilibrium model with financial frictions
title_fullStr Entry, exit and mergers: a competitive equilibrium model with financial frictions
title_full_unstemmed Entry, exit and mergers: a competitive equilibrium model with financial frictions
title_sort entry, exit and mergers: a competitive equilibrium model with financial frictions
publishDate 2005
url http://sedici.unlp.edu.ar/handle/10915/3346
https://doi.org/10.35537/10915/3346
http://www.depeco.econo.unlp.edu.ar/maestria/tesis/037-tesis-fossati.pdf
work_keys_str_mv AT fossatiroman entryexitandmergersacompetitiveequilibriummodelwithfinancialfrictions
bdutipo_str Repositorios
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