Demand Learning and Firm Dynamics: Evidence from Exporters - Archive ouverte HAL Access content directly
Journal Articles Review of Economics and Statistics Year : 2019

Demand Learning and Firm Dynamics: Evidence from Exporters

(1) , (2) , (3)
1
2
3

Abstract

This paper provides direct evidence that learning about demand is an important driver of firms’ dynamics. We present a model of Bayesian learning in which firms are uncertain about idiosyncratic demand in each market and update their beliefs as noisy information arrives. Firms update their beliefs to a given demand shock more, the younger they are. We test and empirically confirm this prediction, using the structure of the model, together with exporter-level data, to identify demand shocks and the firms’ beliefs about future demand. Consistent with theory, we also find the learning process to be weakened in more uncertain environments.
Fichier principal
Vignette du fichier
Demand Learning and Firm Dynamics Evidence from Exporters.pdf (484.59 Ko) Télécharger le fichier
Origin : Files produced by the author(s)
Loading...

Dates and versions

hal-02111159 , version 1 (07-02-2020)

Identifiers

Cite

Nicolas Berman, Vincent Rebeyrol, Vincent Vicard. Demand Learning and Firm Dynamics: Evidence from Exporters. Review of Economics and Statistics, 2019, 101 (1), pp.91-106. ⟨10.1162/rest_a_00731⟩. ⟨hal-02111159⟩
257 View
51 Download

Altmetric

Share

Gmail Facebook Twitter LinkedIn More