Firm Entry and Macroeconomic Dynamics: A State-level Analysis

Francois Gourio, Todd Messer and Michael Siemer

No WP-2016-1, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: 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.

Keywords: Business cycles; Firms entry; firm dynamics; Gross Domestic Product; macroeconomics; productivity; population (search for similar items in EconPapers)
JEL-codes: E31 E32 L1 L16 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2016-01-31
New Economics Papers: this item is included in nep-bec, nep-ind, nep-ino, nep-mac and nep-sbm
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Citations: View citations in EconPapers (46)

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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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