This paper explores the importance of firm dynamics, including entry and exit and the allocation of carbon emissions across firms, on the green transition. Using the 2000–2019 firm-level register data on greenhouse gas emissions matched with the Financial Statement data in the Finnish...

In this paper we augment the Bayesian unobserved components model of the EU Commission to estimate the cyclical component of total factor productivity (TFP gap) with a factor structure to include a wide array of business cycle indicators. We demonstrate that this model extension considerably...

A rise in the aggregate markup can be decomposed into an effect coming from changes in firm-level markups and an effect coming from reallocation of economic activity toward high-markup firms. I show that such a decomposition is heavily influenced by measurement error of firm-level markups. When...