Slow recoveries

Raphael Bergoeing () and Norman; Repetto
Authors registered in the RePEc Author Service: Norman V. Loayza ()

No 36, Econometric Society 2004 Latin American Meetings from Econometric Society

Abstract: Economies respond differently to aggregate shocks that reduce output. While some countries rapidly recover their pre-crisis trend, others stagnate. Recent studies provide empirical support for a connection between aggregate growth and plant dynamics through their effect on productivity: the entry and exit of firms and the reallocation of resources from less to more efficient firms explain a relevant part of transitional productivity dynamics. In this paper we use a stochastic general equilibrium model with heterogeneous firms to study the effect on aggregate short-run growth of policies that distort the process of birth, growth and death of firms, as well as the reallocation of resources across economic units. Our findings show that indeed, policies that alter plant dynamics can explain slow recoveries. Associated output losses are large

Keywords: productivity growth; plant dynamics; policy; general equilibrium. (search for similar items in EconPapers)
JEL-codes: D21 D24 L16 (search for similar items in EconPapers)
Date: 2004-08-11
View citations in EconPapers

Downloads: (external link)
http://www.dii.uchile.cl/~raphaelb/docs/BLR_NBER main text (text/plain)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Working Paper: Slow Recoveries (2004)
Working Paper: Slow Recoveries (2004)
Working Paper: Slow Recoveries (2004)
Journal Article: Slow recoveries (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ecm:latm04:36

Access Statistics for this paper

More papers in Econometric Society 2004 Latin American Meetings from Econometric Society
Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().