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 errorridden
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.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.