Replication data for: Entry, Exit, Firm Dynamics, and Aggregate Fluctuations

Principal Investigator(s): View help for Principal Investigator(s) Gian Luca Clementi; Berardino Palazzo

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data_codes_clementi_palazzo			12/07/2019 02:19:PM
LICENSE.txt	text/plain	14.6 KB	12/07/2019 09:20:AM

Project Citation:

Clementi, Gian Luca, and Palazzo, Berardino. Replication data for: Entry, Exit, Firm Dynamics, and Aggregate Fluctuations. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116400V1

Project Description

Summary: Firm entry and exit amplify and propagate the effects of aggregate shocks, leading to greater persistence and unconditional variation of aggregate quantities. Following a positive aggregate shock, entry rises. As in the data, entrants are small and their initial impact on aggregate dynamics is negligible. However, as the common productivity component reverts to its unconditional mean, the youngsters that survive grow larger, generating a wider and longer expansion than in a scenario without entry or exit. The model also identifies a causal link between the drop in establishments at the outset of the Great Recession and the subsequent slow recovery.

Scope of Project

JEL Classification:
      D21 Firm Behavior: Theory
      D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
      E22 Investment; Capital; Intangible Capital; Capacity
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E32 Business Fluctuations; Cycles
      G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms

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Published Versions

V1 [2019-12-07]

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Dublin Core

DDI 2.5

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