Search Results
Journal Article
U.S. Business Applications Surge in the Face of COVID-19
Business formation in the United States has been on a decline for several decades. Most prior economic recessions have accelerated this trend. However, the recent economic downturn associated with COVID-19 appears to have had the opposite effect: business formation, as measured by business applications, has actually surged since late May.
Newsletter
Small Business Employment in the Pandemic Era and Beyond
In this article, we study the creation of small firms, with a focus on the post-March 2020 period (i.e., after the start of the global Covid-19 pandemic).1 We document the increase in new small firms, as well as the contributions of small firms to employment growth, during this period. Our analysis shows that, despite the increase in the number of small businesses, the share of employees working for small firms is considerably lower than in large businesses and is, in fact, declining.
Working Paper
Firm Dynamics, Inflation, and the Transmission of Monetary Policy
I study how fluctuations in business formation and destruction affect inflation and the transmission of monetary policy. To do this analysis, I extend a New Keynesian model to include endogenous business formation and destruction and heterogeneous producers. A decline in the number of producers puts upward pressure on inflation, and I find that this mechanism can explain about half of the missing deflation following the Great Recession. I then study the transmission of monetary policy in this framework. I show that endogenous fluctuations in entry generate an intertemporal trade-off in ...