This paper introduces a New Keynesian multi-sector industry model that integrates firm heterogeneity, entry, and exit dynamics, while considering energy production from both fossil fuels and renewables. We investigate the effects of a sustained increase in fossil fuel prices on sectoral size,...

This paper provides a first empirical assessment of selected key indicators of the degree of competition in Austria in terms of industry concentration, firm-level markups and business dynamics. The analysis is based on firm-level data from 2008 to 2020 in collaboration with OECD Multiprod 2.0...

Over the last three decades, Total Factor Productivity growth in Latin America has disappointed and informality persisted. To shed light on this outcome, we exploit a unique database (by Latin American standards) for Mexico, a country where manufacturing exports grew from 7 to 33 per cent of...

This study examines the decline in firm dynamism within the Netherlands, potentially linked to the deceleration of productivity growth. We utilise a rich microdata set covering the period 2006-2016, encompassing nearly all Dutch corporations. This dataset facilitates an evaluation of...

This paper studies the role of credit constraints in accounting for the dynamics of firm exit during the Great Recession. We present novel firm-level evidence on the role of credit constraints on exit behavior during the Great Recession. Firms in financial distress, with tighter access to...

This paper investigates the evolution of aggregate productivity and markups among French manufacturing firms between 1994 and 2016, by focusing on the role of reallocation with respect to both aggregate measures. Firm-level productivity and markups are estimated based on a gross output translog...

Purpose of the article: The purpose of this article is to assess private equity exit strategies of CEE portfolio companies with regards to desired exit routes, including a cross-border deal aspect and a pre-exit holding period. Methodology/methods: This paper employs secondary data from the...

We study the economic consequences of anti-loss trafficking rules, which disallow the use of loss carry-forwards as tax shield after a substantial ownership change. Using staggered changes to these rules, we find that limiting the transfer of tax losses reduces the number of M&As with...

This paper explores the impacts of temperature changes on the spatial distribution of industries, focusing on temperature effects on firm entry and exit. Using the information on all firms registered in China, we find a robust inverted U-shaped relationship between temperature and firm entry and...

When facing economic setbacks, managers may continue operating due to the concern that exiting may harm employees who lose their jobs. We propose that managers with higher prosocial preferences set lower exit thresholds and avoid risky investments that increase the risk of having to exit. These...

This study explores the signaling dynamics in the CEO-TMT interface during the founder exit process. We theorize the initial familial appointment as a substantive signal for the founder's future choice of exit modes, influencing top managers' perceptions and career decisions. To interpret CEOs'...

We examine whether the patterns of entry and exit established in prior work continue to persist, despite recessions in 2001 and 2008, the introduction of the new Form 990 in 2008, and claims of increased IRS enforcement. We find that charity net entry rates remain positive and consistent over...

The past few decades have witnessed a slowdown in productivity growth in many advanced economies, including Finland. This study examines product switching in Finnish manufacturing firms from 2009 to 2019. The findings reveal a notable trend towards specialization, with more firms focusing on a...

We study foreign firm exit from Russia following the 2022 offensive in Ukraine. Using administrative data on the universe of equity ownership in Russia we find that Western-owned firms that exited Russia in 2022 accounted for 1.5%, 3.0%, and 3.6% of capital stock, revenues, and wage bill in...

Although wage inequality is an important and widely studied issue, the literature is vastly silent on the relationship between firm entry and exit and the wage dispersion between firms. Using a 50% random administrative sample of West German establishments over the period 1976–2017, I study...

We study the economic consequences of anti-loss trafficking rules, which disallow the use of loss carry-forwards as tax shield after a substantial ownership change. Using staggered changes to these rules, we find that limiting the transfer of tax losses reduces the number of M&As with...

This paper uncovers an inverted U-shaped relationship between firm exit and total factor productivity (TFP) growth using Spanish data. At low levels of firm exit, Schumpeterian cleansing effects dominate and the effect of firm destruction on TFP is positive, but when exit rates are very high,...

Encouraged by the forbearance of creditors and exit barriers (e.g., inefficient insolvency regimes), the zombie phenomenon has weakened business dynamism and, as a consequence, has slowed economic growth in most economies in recent decades. In this paper, we examine the recovery and exit of...

This study comprehensively explores how a firm’s market-specific import experience affects its export market exit. By utilizing Chinese Customs Data over the period of 2000-2016, we empirically find that import experience increases an exporter’s export market exit probability. Further, we...

Communities across the United States are taking advantage of new technologies and governance forms to assert greater control over their energy systems. For decades, energy provision throughout much of the nation was heavily centralized. Even where market-oriented reforms emerged, most consumers...

We quantify the role of firm entry and exit in shaping the output costs of sovereign debt crises. Empirically, higher sovereign risk correlates with less firm entry and more exits. We find evidence of a credit-supply channel explaining the sovereign risk-entry relationship but not for the...

We study how the countercyclicality of temporary layoffs affects aggregate unemployment fluctuations, firm entry and exit dynamics, and macroeconomic fluctuations by building a tractable framework with equilibrium unemployment and endogenous firm entry and exit where firms have a choice over...