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Title:A Structural Empirical Model of Firm Growth, Learning, and Survival PDF Logo
Authors:Abbring, Jaap H.
Campbell, Jeffrey R.
Issue Date:2003
Series/Report no.:IZA Discussion paper series 781
Abstract:We present a structural model of firm growth, learning, and survival and consider its identification and estimation. In the model, entrepreneurs have private and possibly errorridden observations of persistent and transitory shocks to profit. We demonstrate that the model's parameters can be recovered from public observations of sales and survival, and we estimate them using monthly data from new bars in Texas. We find that entrepreneurs observe profit's persistent component without error. In this sense, their information is substantially superior to the public's.
Subjects:firm dynamics
Bayesian learning
identification
estimation
JEL:D83
C41
C34
C35
L11
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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