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The Impact of Business Cycle Conditions on Firm Dynamics and Composition.
- Source :
- Journal of Economic History; Jun2023, Vol. 83 Issue 2, p398-430, 33p
- Publication Year :
- 2023
-
Abstract
- 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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00220507
- Volume :
- 83
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Journal of Economic History
- Publication Type :
- Academic Journal
- Accession number :
- 163826519
- Full Text :
- https://doi.org/10.1017/S0022050723000086