The Impact of Business Cycle Conditions on Firm Dynamics and Composition

• 成果类型: Article
• 署名作者: Artunc, Cihan
• 刊物名称: JOURNAL OF ECONOMIC HISTORY
• ISSN/ISSBN: 0022-0507
• DOI: 10.1017/S0022050723000086
• 发表日期: 2023
• 页码: 398-430
• 关键词: world prices; entry; egypt; LIFE; EXIT; form; PRODUCTIVITY; ORGANIZATION; enterprise; selection

摘要

This paper estimates the causal impact of short-term aggregate fluctuations in Egypt, 1911-48, using global cotton price shocks. Firm entry was procyclical, and exit was acyclical. There were persistent differences between cohorts over the cycle; expansionary cohorts were of lower quality. The evidence supports models of firm entry with ex-ante heterogeneity. The findings highlight the extensive margin of entry as the primary adjustment mechanism. As a result, recessions had a strong isolation effect. This nature of firm entry amplified and propagated temporary price shocks.