Federal Reserve Bank of Chicago
Working Paper Series
Firm Entry and Macroeconomic Dynamics: A State-level Analysis
Using an annual panel of U.S. states over the period 1982-2014, we estimate the response of macroeconomic variables to a shock to the number of new firms (startups). We find that these shocks have significant effects that persist for many years on real gross domestic product, productivity and population. This is consistent with simple models of firm dynamics where a “missing generation” of firms affects productivity persistently.
Cite this item
Francois Gourio & Todd Messer & Michael Siemer, Firm Entry and Macroeconomic Dynamics: A State-level Analysis, Federal Reserve Bank of Chicago, Working Paper Series WP-2016-1, 31 Jan 2016.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
Keywords: Business cycles; Firms entry; Firms dynamics; Gross Domestic Product; macroeconomics; productivity; population
This item with handle RePEc:fip:fedhwp:wp-2016-01
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