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Firms’ Dynamics and Business Cycle: New Disaggregated Data

Author

Listed:
  • Lorenza Rossi

    () (Department of Economics and Management, University of Pavia)

  • Emilio Zanetti Chini

    () (Department of Economics and Management, University of Pavia)

Abstract

We provide stylized facts on firms dynamics by disaggregating U.S. yearly data from 1977 to 2013. To this aim, we use a new unobserved component-based method, encompassing several classical regression-based techniques currently in use. The new time series of Entry and Exit of firms at establishment level are feasible proxies of Business Cycle. Exit is a leading and countercyclical indicator, while Entry is lagging and procyclical. The resulting SVAR analysis supports the recent theoretical findings of the literature on firms dynamics.

Suggested Citation

  • Lorenza Rossi & Emilio Zanetti Chini, 2016. "Firms’ Dynamics and Business Cycle: New Disaggregated Data," DEM Working Papers Series 123, University of Pavia, Department of Economics and Management.
  • Handle: RePEc:pav:demwpp:demwp0123
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    References listed on IDEAS

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    Cited by:

    1. Huw Dixon & ANTHONY SAVAGAR, 2017. "The Effect of Firm Entry on Capacity Utilization and Macroeconomic Productivity," 2017 Meeting Papers 1130, Society for Economic Dynamics.
    2. Emilio Zanetti Chini, 2013. "Generalizing smooth transition autoregressions," CREATES Research Papers 2013-32, Department of Economics and Business Economics, Aarhus University.
    3. Lorenza Rossi & Emilio Zanetti Chini, 2016. "Firms’ Dynamics and Business Cycle: New Disaggregated Data," DEM Working Papers Series 123, University of Pavia, Department of Economics and Management.

    More about this item

    Keywords

    Entry and Exit; State Space; Business Cycle; Disaggregation; SVAR.;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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