Household businesses make up the majority of firms in developing economies. This paper uses a novel tax census database that covers the universe of tax-registered household businesses to analyze the entry and exit of owner-operated firms in Vietnam during January 2018 to August 2020. It...

Empirical studies on small business survival and exits focus on endogenous firms and top manager characteristics, whereas few studies consider exogenous demand shocks and local consumer awareness and behavior, which are especially important for local hospitality industries. Therefore, this study...

The chemical fertilizer industry has made great contributions to China's food security. Existing studies mainly focus on evaluating fertilizer use efficiency at the farm level whereas little is known about the technical efficiency of Chinese firms producing fertilizer. Based on the Chinese...

Electricity markets worldwide are undergoing a many‐decade transition in the way electricity is generated and consumed. The success of this transition depends critically on climate policy and market design. We model the most advanced electricity markets in the world to evaluate the impact of...

We survey the empirical evidence on corporate survival and its determinants in European emerging markets. We demonstrate that (i) institutional quality is a significant preventive factor for firm survival in all sectors of the economy, which holds for small, medium and large firms alike. On the...

This paper analyses the factors driving structural change in Swiss dairy farming. We focus on the most important farm type in Switzerland, dairy farms, to examine which factors contribute to a farmer's decision to abandon farming or change to suckler cow farm type. Swiss dairy farming is...

We study the asset-pricing implications of changes in the variety of consumption goods which happens through free entry and exit of rms. Fluctuations in varieties drive a wedge between the measured and model-based (including variety growth) consumer price index making the pricing kernel as well...

Applying the Foster, Haltiwanger and Krizan (FHK) (2001) decomposition to plant-level manufacturing data from Chile and Korea, we find that the entry and exit of plants account for a larger fraction of aggregate productivity growth during periods of fast GDP growth. To analyze this relationship,...

The labor force participation rate of older men under age 65 has shown a significant recent decline. Cross-sectional studies linking early retirement to increased Social Security income have also made explicit or implicit temporal projections of changes in participation in response to changes in...

In this article, we analyze competition for agricultural land as an important, scarce and immobile input. The cost of cultivating a parcel of land depends strongly on the distance from the farmer to the plot, leading to spatially small land markets. To investigate this issue, we are able to use...

With the market-oriented reform of China's oil and gas industry, market entry regulation in the field of oil and gas exploitation has gradually relaxed, and the number of firms entering this field and the total number of firms are increasing daily. However, since 2012, the number of firms...

This paper examines the impact of governmental generous financial support for dine-in restaurants that reduced their business hours in the context of the COVID-19 pandemic on the entry and exit of restaurants using administrative data. The descriptive analysis results show that the number of...

We study the asset-pricing implications of changes in the variety of consumption goods which happens through free entry and exit of firms. Fluctuations in varieties drive a wedge between the measured and model-based (including variety growth) consumer price index making the pricing kernel as...

We explore the determinants and consequences of U.S. corporations limiting their business operations in Russia in the immediate aftermath of the 2022 Russian invasion of Ukraine. Firms with Russian exposure experience slightly worse stock market returns when the invasion begins on February 24,...

We test whether limited market discipline imposes exit barriers and poor profitability in banking. We exploit an exogenous shock to the governance of governmen-owned banks: the unification of counties. County mergers lead to enforced governmen-owned bank mergers. We compare forced to voluntary...

Public spending (i.e., “G”) enables governments to fulfill their fiscal policies. This paper takes a micro perspective and quantifies the impact of procurement spending - a specific component of G - on firm survival. We find that firms that receive public contracts survive longer, ceteris...

We use competing risks methods to investigate the causal link between venture capital (VC) investments supported by the EIF and the exit prospects and patenting activity of young and innovative firms. Using a novel dataset covering European start-ups receiving VC financing in the years 2007 to...

We analyze shocks to productivity, collateral constraint (credit shock), firm operation, and labor disutility in a model of firm dynamics with entry and exit. Shocks to firm operation and labor disutility capture COVID-19 lockdowns. Compared to the productivity shock, the credit and the lockdown...

This paper establishes that entry and exit regulate the top half of the profitability distribution in the post-1970 U.S. economy. We, first, document stability in the distribution of total profits earned on tangible, intangible, and financial capital. Whereas a narrower measure of returns on...

Can culture explain persistent differences in economic activity among individuals and across regions? A novel measure of cultural origin enables us to contrast the entrepreneurial activity of individuals located in the same municipality but whose ancestors lived just on opposite sides of the...

This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian "cleansing" of less productive firms. Using firm-level data for 31 economies, the study finds that less productive firms have a higher probability of permanently closing during the crisis,...

Asset purchase programmes (APPs) may insulate banks from having to terminate relationships with unproductive customers. Using administrative plant and bank data, we test whether APPs impinge on industry dynamics in terms of plant entry and exit. Plants in Germany connected to banks with access...