Business Conditions and Business Starts

Details

Serval ID
serval:BIB_288233FFAA5D
Type
Article: article from journal or magazin.
Collection
Publications
Title
Business Conditions and Business Starts
Journal
International Journal of the Economics of Business
Author(s)
Mata J.
ISSN
1357-1516
Publication state
Published
Issued date
1996
Peer-reviewed
Oui
Volume
3
Number
3
Pages
295-306
Language
english
Abstract
This paper analyses the effect of business conditions on new firm starts. The birth of new firms displays a pro-cyclical behaviour, more firms being created when GDP is growing fast and the interest rate is low. The entry response to industry profitability is tempered by the level of sunk costs; for a given profit signal, more entry occurs where sunk costs are low.
Keywords
Entry, Business starts, Sunk costs
Create date
28/04/2017 13:24
Last modification date
20/08/2019 13:08
Usage data