Firm Entry and Macroeconomic Dynamics: A State-level Analysis

Francois Gourio, Todd Messer and Michael Siemer

No 2016-043, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Using an annual panel of US 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 GDP, productivity, and population. This result is consistent with simple models of firm dynamics where a ?missing generation? of firms affects productivity persistently.

Keywords: Productivity; Business dynamics; Employment; Firm entry; Missing generation; New business formation (search for similar items in EconPapers)
JEL-codes: E24 E32 L25 L26 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2016-02
New Economics Papers: this item is included in nep-bec, nep-ent, nep-ino, nep-mac and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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http://www.federalreserve.gov/econresdata/feds/2016/files/2016043pap.pdf (application/pdf)

Related works:
Journal Article: Firm Entry and Macroeconomic Dynamics: A State-Level Analysis (2016)
Working Paper: Firm Entry and Macroeconomic Dynamics: A State-level Analysis (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2016-43

DOI: 10.17016/FEDS.2016.043

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