The adoption and termination of suppliers over the business cycle☆

• 成果类型: Article
• 署名作者: Xu, Le; Yu, Yang; Zanetti, Francesco
• 署名单位: Shanghai Jiao Tong University; University of Oxford
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2025.103730
• 发表日期: 2025
• 关键词: Management and adjustment costs; Adoption and termination of suppliers; business cycles

摘要

We assemble a firm-level dataset to study the adoption and termination of suppliers over business cycles. We document that the aggregate number and rate of adoption of suppliers are procyclical. The rate of termination is acyclical at the aggregate level, and the cyclicality of termination encompasses large differences across producers. To account for these new facts, we develop a model with optimizing producers that incur separate costs for management, adoption, and termination of suppliers. These costs alter the incentives to scale up production and to replace existing with new suppliers. Sufficiently high convexity in management relative to adjustment costs is crucial to replicating the observed cyclicality in the adoption and termination rates at the and levels. We the welfare of