TY  - JOUR
AU  - Abbring,Jaap H.
AU  - Campbell,Jeffrey R.
TI  - A Structural Empirical Model of Firm Growth, Learning, and Survival
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9712
PY  - 2003
Y2  - May 2003
UR  - http://www.nber.org/papers/w9712
L1  - http://www.nber.org/papers/w9712.pdf
N1  - Author contact info:
Jaap H. Abbring
CentER, Department of Econometrics & OR
Tilburg University
P.O. Box 90153
5000 LE Tilburg, The Netherlands
E-Mail: J.H.Abbring@uvt.nl

Jeffrey R. Campbell
Senior Economist
Economic Research Department
Federal Reserve Bank of Chicago
230 South LaSalle Street
Chicago, IL 60604-1413
Tel: 312/322-6156
Fax: 312/322-2357
E-Mail: jcampbell@frbchi.org
AB  - We present a structural model of firm growth, learning, and survival and consider its identification and estimation. In the model, entrepreneurs have private and possibly error-ridden observations of persistent and transitory shocks to profit. We demonstrate that the model's parameters can be recovered from public observations of sales and survival, and we estimate them using monthly data from new bars in Texas. We find that entrepreneurs observe profit's persistent component without error. In this sense, their information is substantially superior to the public's.
ER  -