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Entry, Exit of Firms Amplify the Business Cycle


Abstract: When new businesses are created, they generate new jobs. When unprofitable businesses close, employees lose their jobs. Given the connection between firm entry and exit and changes in employment, it is natural to ask how this entry and exit affects the broader business cycle.

Keywords: Economic conditions; COVID-19;

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File(s): File format is text/html https://www.dallasfed.org/research/economics/2020/0714
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Provider: Federal Reserve Bank of Dallas

Source: Dallas Fed Economics

Publication Date: 2020-07-14