Business Formation: A Tale of Two Recessions

Emin Dinlersoz, Timothy Dunne, John Haltiwanger and Veronika Penciakova
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Veronika Penciakova: https://www.atlantafed.org/research/economists/penciakova-veronika.aspx

No 2021-5, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: The trajectory of new business applications and transitions to employer businesses differ markedly during the Great Recession and the COVID-19 recession. Both applications and transitions to employer startups decreased slowly but persistently in the post-Lehman crisis period of the Great Recession. In contrast, during the COVID-19 recession new applications initially declined but have since sharply rebounded, resulting in a surge in applications during 2020. Projected transitions to employer businesses also rise, but this projection is dampened by a change in the composition of applications in 2020 toward applications that are more likely to be nonemployers.

Keywords: COVID-19; business failures; liquidity; small business (search for similar items in EconPapers)
JEL-codes: D2 E65 G33 (search for similar items in EconPapers)
Pages: 12
Date: 2021-01-29
New Economics Papers: this item is included in nep-cwa, nep-ent, nep-mac and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in 2021

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Related works:
Journal Article: Business Formation: A Tale of Two Recessions (2021)
Working Paper: Business Formation: A Tale of Two Recessions (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedawp:90075

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DOI: 10.29338/wp2021-05

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