Interdependent Search and Industry Dynamics: on Ericson and Pakes (1995)
نویسنده
چکیده
This note argues about a central analytical inconsistency of Ericson and Pakes (1995). Notwithstanding the explicit claims of the article, the formal hypotheses employed there imply that a firm’s investments do not affect both the evolution of this firm and the dynamics of the whole industry. JEL Classification Numbers: C62, D57, E13, L11.
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