Entry and exit in recent US business cycles

Miguel Casares

Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra from Departamento de Economía - Universidad Pública de Navarra

Abstract: I show evidence indicating that the variability of the total number of business units (establishments) has significantly increased in recent US business cycles, accounting for nearly 2/3 of real GDP fluctuations during the 2003-2012 decade. Next, I examine the role of business creation and destruction in an estimated DSGE-style model extended with endogenous entry and exit. Shocks on both entry and, especially, exit have played a crucial role on explaining the latest boom-bust cycle in the US economy. I also find that the estimated innovations of total factor productivity are positive and high in 2010-2012, which might be the consequence of the dramatic increase in the exit rates observed during the recession of 2008-2009.

Keywords: Entry and exit; DSGE models; US business cycles (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-bec, nep-dge, nep-ent, nep-mac and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in

Downloads: (external link)
http://www2.unavarra.es/gesadj/depEconomia/documentos-trabajo/2015/DT1503.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www2.unavarra.es/gesadj/depEconomia/documentos-trabajo/2015/DT1503.pdf [302 Found]--> https://www2.unavarra.es/gesadj/depEconomia/documentos-trabajo/2015/DT1503.pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:nav:ecupna:1503

Ordering information: This working paper can be ordered from
Papers are not sent in a centralized mode. You can download them with ftp, or contact the authors.

Access Statistics for this paper

More papers in Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra from Departamento de Economía - Universidad Pública de Navarra Campus de Arrosadía - 31006 Pamplona (Spain).
Bibliographic data for series maintained by Javier Puértolas ().