Returns to scale, firm entry, and the business cycle

• 成果类型: Article
• 署名作者: Smirnyagin, Vladimir
• 署名单位: Yale University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2022.12.002
• 发表日期: 2023
• 页码: 118-134
• 关键词: business cycles; firm dynamics; financial frictions

摘要

In the U.S. data, aggregate financial conditions play an important role in accounting for the formation of firms with high returns to scale. A version of a firm dynamics model with financial frictions and the ability of potential entrepreneurs to choose their returns to scale can match the data. In the estimated model, financial frictions slow the rate at which businesses with high returns to scale grow disproportionately; this discourages such firms from entering during recessions. The missing generation of firms with high returns to scale delays recoveries in the aftermath of economic crises. +