TY - BOOK ID - 137199772 TI - A Structural Model of Establishment and Industry Evolution : Evidence From Chile PY - 2009 PB - Washington, D.C., The World Bank, DB - UniCat KW - Data analysis KW - Development research KW - E-Business KW - Economic Theory and Research KW - Education KW - Experiments KW - Food and Beverage Industry KW - Industrial Management KW - Industry KW - Knowledge for Development KW - Labor and Social Protections KW - Labor Policies KW - Machinery KW - Macroeconomics and Economic Growth KW - Market competition KW - Markets and Market Access KW - Monopoly KW - Paper industry KW - Private Sector Development KW - Product market KW - R&D KW - R&D expenditures KW - Research working papers KW - Researchers KW - Retail KW - Science and Technology Innovation KW - Science Education KW - Scientific Research and Science Parks KW - Simulation KW - Substitutes KW - Supplier KW - Techniques KW - Textile industry KW - Turnover KW - Water and Industry KW - Water Resources KW - Weighting UR - https://www.unicat.be/uniCat?func=search&query=sysid:137199772 AB - Many recent models have been developed to fit the basic facts on establishment and industry evolution. While these models yield a simple interpretation of the basic features of the data, they are too stylized to confront the micro-level data in a more formal quantitative analysis. In this paper, the author develops a model in which establishments grow by innovating new products. By introducing heterogeneity to a stylized industry evolution model, the analysis succeeds in explaining several features of the data, such as the thick right tail of the size distribution and the relations between age, size, and the hazard rate of exit, which had eluded existing models. In the model, heterogeneity in producer behavior arises through a combination of exogenous efficiency differences and accumulated innovations resulting from past endogenous research and development investments. Integrating these forces allows the model to perform well quantitatively in fitting data on Chilean manufacturers. The counterfactual experiments show how producers respond to research and development subsidies and more competitive market environments. ER -