A model with new industries opening as a Poisson arrival is set up. Firms have the choice to "hop" into new industries searching for their abilities there. The model aims at linking endogenous skill prices (and the value of the firm), the product life cycle and the timing of the switch to the production of new goods in new industries
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Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number
819.
Length: Date of creation: 2004 Date of revision: Handle: RePEc:red:sed004:819
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