Productivity and firm dynamics over the business cycle
| dc.contributor.author | Assefa, Abraham | |
| dc.contributor.author | Lapitskaya, Darya | |
| dc.contributor.author | Uusküla, Lenno | |
| dc.date.accessioned | 2022-07-05T16:55:05Z | |
| dc.date.available | 2022-07-05T16:55:05Z | |
| dc.date.issued | 2022 | |
| dc.description.abstract | The paper studies the effects of technology shocks on the creation and destruction of firms. Using US data and a VAR model the paper finds Schumpeterian creative destruction for investment-specific technology shocks. A positive investment-specific technology shock increases the number of firms opening, but also leads to a higher number of firms closing. In contrast, labour-neutral technology shocks also benefit old firms. An increase in overall productivity leads to an increase in the number of new firms and a drop in the number of failures. Both margins contribute to an increase in the number of firms in the economy. A medium-scale DSGE model with endogenous entry and exit that is that is augmented with additional features is able to capture these stylised facts. | en |
| dc.identifier.uri | http://hdl.handle.net/10062/83092 | |
| dc.language.iso | eng | en |
| dc.relation | info:eu-repo/grantAgreement/EC/H2020/822781///GROWINPRO | en |
| dc.rights | info:eu-repo/semantics/openAccess | en |
| dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 International | * |
| dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/ | * |
| dc.subject | VAR model | en |
| dc.subject | DSGE model | en |
| dc.subject | firm dynamics | en |
| dc.subject | productivity | en |
| dc.subject | firm turnover | en |
| dc.subject | technology shocks | en |
| dc.subject | investment specific technology shocks | en |
| dc.title | Productivity and firm dynamics over the business cycle | en |
| dc.type | info:eu-repo/semantics/article | en |