dynamics. The first observation is the steady decline in the firm entry rate over the last thirty years, and the second is the … thirty-year decline in firm entry. This “start-up deficit” has both an immediate and a delayed (by shifting the age … time, the trend decline in firm entry masks the diminishing cyclicality during contractions and reinforces it during …

to rational inattention, the model generates both inefficient entry and labor misallocation. We show that information … increase in inefficient entry, most entrants hire fewer workers, and misallocation goes up. The transfer makes low …