Journal articles
Demand Learning and Firm Dynamics: Evidence from Exporters
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.
Cited literature [45 references]
https://hal-amu.archives-ouvertes.fr/hal-02111159
Contributor : Elisabeth Lhuillier <>
Submitted on : Friday, February 7, 2020 - 3:56:44 PM
Last modification on : Tuesday, January 19, 2021 - 11:08:37 AM
Contributor : Elisabeth Lhuillier <>
Submitted on : Friday, February 7, 2020 - 3:56:44 PM
Last modification on : Tuesday, January 19, 2021 - 11:08:37 AM
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