The extensive margin and US aggregate fluctuations: a quantitative assessment

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dc.contributor.authorCasares Polo, Miguel
dc.contributor.authorKhan, Hashmat
dc.contributor.authorPoutineau, Jean-Christophe
dc.contributor.departmentEkonomiaeu
dc.contributor.departmentInstitute for Advanced Research in Business and Economics - INARBEen
dc.contributor.departmentEconomíaes_ES
dc.date.accessioned2021-04-07T07:20:57Z
dc.date.available2022-11-01T00:00:11Z
dc.date.issued2020
dc.description.abstractWe report empirical evidence indicating that US net business formation has recently turned more volatile, procyclical and persistent. To study these stylized facts, we estimate a DSGE model with endogenous entry and exit. Business units feature heterogeneous productivity and they shut down if the present value of expected future dividends falls below the current liquidation value. The model provides a better fit than a constant exit rate model with the fluctuations of US business formation. The introduction of the extensive margin amplifies the effects of technology and risk-premium shocks, and reduces the procyclicality of firm-level production. The main sources of variability of the US aggregate fluctuations during the Great Recession are countercyclical technology shocks, persistent adverse risk-premium shocks, and expansionary monetary policy shocks.en
dc.description.sponsorshipMiguel Casares would like to acknowledge the financial support of the Spanish government (research project PGC2018-093542-B-I00).en
dc.embargo.lift2022-11-01
dc.embargo.terms2022-11-01
dc.format.extent34 p.
dc.format.mimetypeapplication/pdfen
dc.identifier.doi10.1016/j.jedc.2020.103997
dc.identifier.issn0165-1889
dc.identifier.urihttps://academica-e.unavarra.es/handle/2454/39498
dc.language.isoengen
dc.publisherElsevieren
dc.relation.ispartofJournal of Economic Dynamics and Control, 2020, 120, 103997en
dc.relation.projectIDinfo:eu-repo/grantAgreement/MINECO//ECO2013-48496-C4-2-R/ES/
dc.relation.projectIDinfo:eu-repo/grantAgreement/MINECO//ECO2013-48496-C4-2-R/ES/
dc.relation.projectIDinfo:eu-repo/grantAgreement/MINECO//ECO2013-46954-C3-1-R/ES/
dc.relation.publisherversionhttps://doi.org/10.1016/j.jedc.2020.103997
dc.rights© 2020 Elsevier B.V. This manuscript version is made available under the CC-BY-NC-ND 4.0en
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectExtensive marginen
dc.subjectEntry and exiten
dc.subjectDSGE modelsen
dc.subjectUS business cyclesen
dc.titleThe extensive margin and US aggregate fluctuations: a quantitative assessmenten
dc.typeinfo:eu-repo/semantics/article
dc.type.versioninfo:eu-repo/semantics/acceptedVersion
dspace.entity.typePublication
relation.isAuthorOfPublication308e2f24-fee5-4ddb-be38-6e7a11cabf44
relation.isAuthorOfPublication.latestForDiscovery308e2f24-fee5-4ddb-be38-6e7a11cabf44

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