A structural analysis of US entry and exit dynamics
Ver/
Fecha
2018Versión
Acceso abierto / Sarbide irekia
Tipo
Documento de trabajo / Lan gaiak
Impacto
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nodoi-noplumx
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Resumen
The authors report empirical evidence indicating that US business formation has recently turned
more volatile, procyclical and persistent due to changes in exit dynamics. 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 c ...
[++]
The authors report empirical evidence indicating that US business formation has recently turned
more volatile, procyclical and persistent due to changes in exit dynamics. 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 estimation results imply
structural changes in US exit dynamics after 2007: the semi-elasticity of the exit rate to
critical productivity has increased and the average plant-level productivity has decreased. [--]
Materias
Endogenous entry and exit,
DSGE models,
US business cycles
Serie
Documentos de Trabajo DE - ES Lan Gaiak /
1801
Departamento
Universidad Pública de Navarra. Departamento de Economía /
Nafarroako Unibertsitate Publikoa. Ekonomia Saila
Entidades Financiadoras
Miguel Casares would like to acknowledge the financial support of the Spanish government (research project
ECO2015-64330-P) and Banco de España.