Casares Polo, Miguel2016-05-102016-05-102015https://academica-e.unavarra.es/handle/2454/20633I show evidence indicating that the variability of the total number of business units (establishments) has significantly increased in recent US business cycles, accounting for nearly 2/3 of real GDP fluctuations during the 2003-2012 decade. Next, I examine the role of business creation and destruction in an estimated DSGE-style model extended with endogenous entry and exit. Shocks on both entry and, especially, exit have played a crucial role on explaining the latest boom-bust cycle in the US economy. I also find that the estimated innovations of total factor productivity are positive and high in 2010-2012, which might be the consequence of the dramatic increase in the exit rates observed during the recession of 2008-2009.61 p.application/pdfengCC Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)Entry and exitDSGE modelsUS business cyclesinfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccess