Skip to main content

Firm dynamics in news-driven business cycles: the role of endogenous survival rate

Buy Article:

$55.00 plus tax (Refund Policy)

Abstract:

Evidences from the structural vector-error correction model shows that the new business formation and stock prices co-moves with output under news shocks. However, simply incorporating firm dynamics into Jaimovich and Rebelo’s (Jaimovich and Rebelo, 2009) model cannot explain these empirical findings. We show that this problem can be resolved by introducing endogenous survival rates for the new entrants.

Keywords: E22; E32; aggregate co-movement; expectation-driven business cycle; firm dynamics; news shocks

Document Type: Research Article

DOI: https://doi.org/10.1080/00036846.2014.884701

Affiliations: 1: School of International Business Administration, Shanghai University of Finance and Economics, Shanghai, China 2: Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China

Publication date: 2014-05-24

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more