• Title of article

    Firm dynamics,markupvariations,andthebusinesscycle

  • Author/Authors

    Nir Jaimovich، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2008
  • Pages
    15
  • From page
    1238
  • To page
    1252
  • Abstract
    Wepresentamodelinwhichnetbusinessformationisendogenouslyprocyclical. Variationsinthenumberofoperatingfirmsleadtocountercyclicalvariationsin markupsthatgiverisetoendogenousprocyclicalmovementsinmeasuredtotalfactor productivity (TFP).Basedonthisresult,thepapersuggestsasimplestructural decompositionofvariationsinTFPintothoseoriginatingfromexogenousshocksand thoseoriginatingendogenouslyfromtheinteractionbetweenfirms’entryandexit decisionsandthedegreeofcompetition.Thedecompositionsuggeststhataround40% of themovementsinmeasuredTFPcanbeattributedtothisinteraction.Moreover,the paperanalyzestheeffectson(i)themeasurementofthevolatilityofexogenousshocks in theU.S.economyand(ii)themagnificationofshocksoverthebusinesscycle
  • Keywords
    ProductivityBusiness cyclesFirm dynamicsMarkups
  • Journal title
    Journal of Monetary Economics
  • Serial Year
    2008
  • Journal title
    Journal of Monetary Economics
  • Record number

    846246