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U.S. Business Applications Surge in the Face of COVID-19

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  • Jason Brown

Abstract

Business formation in the United States has been on a decline for several decades. Most prior economic recessions have accelerated this trend. However, the recent economic downturn associated with COVID-19 appears to have had the opposite effect: business formation, as measured by business applications, has actually surged since late May.

Suggested Citation

  • Jason Brown, 2020. "U.S. Business Applications Surge in the Face of COVID-19," Economic Bulletin, Federal Reserve Bank of Kansas City, pages 1-4, November.
    • Handle: RePEc:fip:fedkeb:89067
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    File URL: https://www.kansascityfed.org/documents/7087/US_BusinessApplicationsSurgeFaceCOVID19_EB_Brown.pdf
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    References listed on IDEAS

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    1. Ryan A. Decker & John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2016. "Declining Business Dynamism: What We Know and the Way Forward," American Economic Review, American Economic Association, vol. 106(5), pages 203-207, May.
    2. Howes, Cooper, 2022. "Why does structural change accelerate in recessions? The credit reallocation channel," Journal of Financial Economics, Elsevier, vol. 144(3), pages 933-952.
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    Cited by:

    1. Sarah A. Low & Mallory L. Rahe & Andrew J. Van Leuven, 2023. "Has COVID‐19 made rural areas more attractive places to live? Survey evidence from Northwest Missouri," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(3), pages 520-540, April.
    2. Philip Barrett & Sonali Das & Giacomo Magistretti & Evgenia Pugacheva & Philippe Wingender, 2023. "Long COVID? Prospects for economic scarring from the pandemic," Contemporary Economic Policy, Western Economic Association International, vol. 41(2), pages 227-242, April.

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    Keywords

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    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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