IDEAS home Printed from https://ideas.repec.org/p/red/append/20-136.html

Online Appendix to "Firm Entry and Exit during Recessions"

Author

Listed:
  • Joao Ayres

    (Inter-American Development Bank)

  • Gajendran Raveendranathan

    (McMaster University)

Abstract

We analyze aggregate shocks in a general equilibrium model of firm dynamics with entry and exit and financial frictions. Compared to the productivity shock, a shock to the collateral constraint (credit shock) generates a larger change in firm entry and exit. Calibrating the credit and productivity shocks to the Great Recession, we find that the credit shock accounts for lower entry, higher exit, and the concentration of exit among young firms during the Great Recession. The changes in entry and exit account for 19 and 24 percent of the fall in output and hours, respectively. Furthermore, we discuss how the modeling of potential entrants matters for the quantitative results, and perform a COVID-19 lockdown experiment. (Copyright: Elsevier)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Joao Ayres & Gajendran Raveendranathan, 2021. "Online Appendix to "Firm Entry and Exit during Recessions"," Online Appendices 20-136, Review of Economic Dynamics.
    • Handle: RePEc:red:append:20-136
    Note: The original article was published in the Review of Economic Dynamics
    as

    Download full text from publisher

    File URL: https://red-files-public.s3.amazonaws.com/appendix/20/20-136/AyresRaveendranathan2021_online_appendix.pdf
    Download Restriction: None
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xuanli Zhu, 2025. "Establishment dynamics in post-war Japan: missing entry and shrinking size," The Japanese Economic Review, Springer, vol. 76(2), pages 337-374, April.
    2. Jacques Yana Mbena & Kwabena Obiri Yeboah, 2024. "Striving for a life out of shadows: informal entrepreneurial dynamics in time of crisis," Future Business Journal, Springer, vol. 10(1), pages 1-16, December.
    3. Ghose,Devaki & Montfaucon,Angella Faith Lapukeni, 2023. "Firms in Global Value Chains during Covid-19 : Evidence from Indonesia," Policy Research Working Paper Series 10514, The World Bank.
    4. Danilo Stojanovic & Veljko Bojovic, 2025. "Firm-level Uncertainty and Frictions: Implications for Capital and Financial Decisions in the US," CERGE-EI Working Papers wp793, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. Otrachshenko, Vladimir & Popova, Olga & Nikolova, Milena & Tyurina, Elena, 2022. "COVID-19 and entrepreneurship entry and exit: Opportunity amidst adversity," Technology in Society, Elsevier, vol. 71(C).
    6. Miller, Jason W. & Phares, Jonathan & Burks, Stephen V., 2025. "Bring Out the Bulls: Employment Dynamics of Trucking Firms During Highly Expansive Market Conditions," IZA Discussion Papers 17627, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:append:20-136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.