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Publications [#239256] of Daniel Yi Xu

Journal Articles

  1. Dunne, T; Klimek, SD; Roberts, MJ; Xu, DY, Entry, exit, and the determinants of market structure, The Rand Journal of Economics, vol. 44 no. 3 (September, 2013), pp. 462-487, WILEY, ISSN 0741-6261 [doi]
    (last updated on 2019/12/10)

    Abstract:
    This article estimates a dynamic, structural model of entry and exit for two US service industries: dentists and chiropractors. Entry costs faced by potential entrants, fixed costs faced by incumbent producers, and the toughness of short-run price competition are important determinants of long-run firm values, firm turnover, and market structure. In the dentist industry entry costs were subsidized in geographic markets designated as Health Professional Shortage Areas (HPSA) and the estimated mean entry cost is 11 percent lower in these markets. Using simulations, we find that entry cost subsidies are less expensive per additional firm than fixed cost subsidies. © 2013, RAND.


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