Details

Autor(en) / Beteiligte

• Artunç, Cihan

Titel

The Impact of Business Cycle Conditions on Firm Dynamics and Composition

Ist Teil von

• The Journal of economic history, 2023-06, Vol.83 (2), p.398-430

Ort / Verlag

New York, USA: Cambridge University Press

Erscheinungsjahr

2023

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• This paper estimates the causal impact of short-term aggregate fluctuations in Egypt, 1911–48, using global cotton price shocks. Firm entry was procyclical, and exit was acyclical. There were persistent differences between cohorts over the cycle; expansionary cohorts were of lower quality. The evidence supports models of firm entry with ex-ante heterogeneity. The findings highlight the extensive margin of entry as the primary adjustment mechanism. As a result, recessions had a strong “isolation” effect. This nature of firm entry amplified and propagated temporary price shocks.