Introduces a theory of industry evolution and its application to the United States tire industry. Cause of the nonmonotonicity in firm numbers found in many young industries; Early stages of the industry life cycle; Effect of high unit cost and profit margins; Effect of declining unit cost and increasing competition; Model's explanation of the paths of output, price level and firm numbers.

industrial revolution, tire industry
Southern Economic Journal
Erasmus School of Economics

Carree, M.A, & Thurik, A.R. (2000). The Life Cycle of the U.S. Tire Industry. Southern Economic Journal, 254–278. Retrieved from