Firm Entry and Financial Shocks
Bibliographic Data
| ID | 9717401 |
|---|---|
| Authors | Paul R Bergin (University of California, Davis), Ling Feng (0000-0001-6618-6870, School of Finance and Shanghai University of Finance and Economics), Ching‐Yi Lin (0000-0002-5484-9312, National Tsing Hua University) |
| Year | 2018 |
| Volume | 128 |
| Issue | 609 |
| Pages | 510-540 |
| Publication date | 2018-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12413 |
| OpenAlex | W2486637254 |
| Language | EN |
| Citations received | 1 |
| References cited | 38 |
This article shows that firm entry dynamics are an important part of the propagation of financial shocks to the real macroeconomy. A VAR documents empirically that adverse financial shocks are associated with significant declines in both new firm creation and equity values. A DSGE business cycle model combining endogenous firm entry and financial frictions, where firms have a choice of financing entry through debt or equity, can explain these facts. The model implies that adjustment in firm numbers can moderate the impact of financial shocks on aggregate output, as it buffers the equity value and financial stance of surviving firms
Business · Economics · Financial system · Monetary economics · Corporate Finance and Governance · Economic Growth and Productivity · Firm Innovation and Growth
Job Creation and Job Destruction in the Theory of Unemployment
The economics of small business finance
Patterns of Firm Entry and Exit in U.S. Manufacturing Industries
Off the cliff and back? Credit conditions and international trade during the global financial crisis
House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Productivity, terms of trade and the ‘home market effect’
Endogenous Entry, Product Variety, and Business Cycles
Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity
Credit Cycles
The Slow Growth of New Plants
By How Much Does GDP Rise If the Government Buys More Output
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2024 - 2024 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |