Passive Firm Learning and Employment Projection Error |
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| Authors: | Gabe Todd M Kraybill David S |
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| Institution: | (1) Department of Resource Economics and Policy, University of Maine, 200 Winslow Hall, Orono, ME, 04469-5782, U.S.A.;(2) Department of Agricultural, Environmental, and Development Economics, The Ohio State University, Agricultural Administration Building, Room 340, 2120 Fyffe Road, Columbus, OH, 43210, U.S.A. |
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| Abstract: | This paper analyzes establishment error in estimating employment targets in business startups and expansions. Passive firm learning models provide a testable hypothesis that, other things being equal, old establishments more accurately predict future employment targets than young businesses. Empirical evidence from 442 Ohio establishments implies that an increase of ten years in establishment age is associated with a decrease in employment projection error rate of between 11 and 13 percentage points. |
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