Firm Bankruptcies and Start-Up Activity in Switzerland During the Corona Crisis

Florian Eckert () and Heiner Mikosch
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Florian Eckert: ETH Zurich, Switzerland

No 21-499, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: This paper examines the incidence of rm bankruptcies and start-ups in Switzerland based on unique register data. We propose to assess the frequency of bankruptcies over time using the concept of excess mortality. During the Corona crisis in 2020 and the rst half of 2021, bankruptcy rates were substantially lower and the number of new rm formations was substantially higher as compared to the pre-crisis period. This holds across most industries and regions. The Great Recession and the Swiss Franc Shock showed reverse patterns. Bankruptcies dropped more in industries and cantons, in which the share of rms who received a Covid-19 loan is comparatively high. The strong start-up activity is driven by industries where the pandemic induced structural adjustments.

Keywords: Firm Bankruptcies; Insolvencies; Excess Mortality; Firm Formations; Start-Ups; Switzerland; Corona Crisis; Industry-Level; Canton-Level (search for similar items in EconPapers)
JEL-codes: E32 G33 M13 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2021-11
New Economics Papers: this item is included in nep-cfn, nep-ent, nep-mac and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:kof:wpskof:21-499

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