Entry and exit of manufacturing plants over the business cycle

Lee, Yoonsoo; Mukoyama, Toshihiko

doi:10.1016/j.euroecorev.2015.03.011

Cited by 174 publications

(175 citation statements)

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“…The results of studies which find a disproportionately strong procyclical reaction of new firm growth are partially contradicted by Lee and Mukoyama (2015) and by Moscarini and PostelVinay (2012). Lee and Mukoyama (2015) analyze US manufacturing plants and conclude that plants founded in recessions are significantly larger in terms of employment and more productive than corresponding plants founded during an economic upswing.…”

Section: Introductioncontrasting

confidence: 39%

“…Lee and Mukoyama (2015) analyze US manufacturing plants and conclude that plants founded in recessions are significantly larger in terms of employment and more productive than corresponding plants founded during an economic upswing. 2 Focusing on a comparison of small vs. large, rather than young vs. old firms, Moscarini and Postel-Vinay (2012) present evidence that the net job creation of large firms reacts more sensitively to the business cycle than the net job creation of small firms.…”

Section: Introductionmentioning

confidence: 99%

“…These two types of firms constitute the major part of new firm entry however. Also Lee and Mukoyama (2015) are interested in micro-level outcomes but analyze plant-level data on US manufacturing plants. Their entries include mergers, acquisitions and divestitures, which can lead to abrupt changes in firm age purely due to establishment composition issues -issues that are more likely to occur in an economic downturn than in an upswing.…”

Section: Introductionmentioning

confidence: 99%

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The Growth and Human Capital Structure of New Firms Over the Business Cycle

Murmann

2016

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Abstract Recent research suggests that employment in young firms is more negatively impacted during economic downturns than employment in incumbent firms. This questions the effectiveness of policies that promote entrepreneurship to fight crises. We complement prior research that is mostly based on aggregate data by analyzing cyclical effects at the firm level. Using new linked employer-employee data on German start-ups we show that under constant human capital of the firms' founders, employment growth in less than 1 1 /2-year-old start-ups reacts countercyclically and employment growth in older start-ups reacts procyclically. The young start-ups realize their countercyclical growth by hiring qualified labor market entrants who might be unable to find employment in incumbent firms during crises. This mechanism is highly important in economic and management terms and has not been revealed by prior research.

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Section: Introductioncontrasting

confidence: 39%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Growth and Human Capital Structure of New Firms Over the Business Cycle

Murmann

2016

SSRN Journal

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“…Therefore, an extension of the present model with collateral constraints could potentially generate an endogenous tightening of collateral constraints after a negative TFP shock, reconciling both the cyclicality of reallocation and that of credit availability in a model with production heterogeneity. Furthermore, US plant-level data suggest that while entry is strongly procyclical, exit is almost acyclical (Lee and Mukoyama, 2015). This evidence on exit is a puzzle for models with productivity shocks, where the exit decision is driven by a fixed cost of production denominated in units of the output good.…”

Section: Resultsmentioning

confidence: 99%

The Market for Used Capital: Endogenous Irreversibility and Reallocation over the Business Cycle

Lanteri

2018

American Economic Review

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Capital reallocation is procyclical in the data, but countercyclical in standard businesscycle models. To solve this puzzle, I build a model of endogenous partial irreversibility, with heterogeneous firms facing aggregate and idiosyncratic productivity shocks. Used investment goods are imperfect substitutes for new ones because of firm-level capital specificity. The price of used capital responds to aggregate shocks, leading to equilibrium real-option effects on investment and reallocation. The model generates procyclical capital reallocation and procyclical price of used capital, consistent with new industrylevel evidence I present, and provides a microfoundation for both micro and macro capital adjustment costs.

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“…As summarized by Foster et al (1998), many studies in this field pay great attention to the reallocation and restructuring of inputs and outputs, especially the reallocation due to entry and exit of firms, for example, in the U.S. retail trade sector (Foster et al, 2006), in the U.S. manufacturing sector (Baily, Bartelsman, & Haltiwanger, 1996;Baily et al, 2001;Baily et al, 1992; Y. Lee & Mukoyama, 2015;Olley & Pakes, 1996), in the Taiwanese manufacturing sector (Aw et al, 2001) and in the Israeli industry (Griliches & Regev, 1995). Moreover, using plant level micro data on manufacturing establishments in China, India and the U.S., Hsieh and Klenow (2009) estimate the loss of aggregate productivity due to the misallocation of resources.…”

Section: Literature Reviewmentioning

confidence: 99%

Moving towards an energy efficient future

Zhong¹

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Finally and most importantly, I would like to express my sincere gratitude to my parents, who always believe in me and have endured my absence from family for so many years. Thank you so much for your love, support and giving me the freedom to chase my dreams. 11 SummaryAs an influential development paradigm, sustainable development has gained broad support from various governments and organizations at regional, national and global levels. It is a process involving many important dimensions and its study requires efforts from researchers from all the disciplines of natural and social sciences. In this thesis, we focus on energy efficiency, a key element in the pursuit of sustainable development. The dynamics of energy efficiency is an evolutionary process that involves industries, technologies and institutions. Therefore, it requires a wide range of policies, aimed at both macro and micro levels. It is of primary importance to have a careful economic study of all the detailed processes that are involved in the policy-relevant areas. Numerous programs, funds, facilities related to energy efficiency have been implemented so far and are still ongoing. In the study of energy efficiency, many policy-relevant areas that require numerous research and financial inputs and careful empirical analysis are involved. Due to data availability and the feasibility of this study to be effectively conducted, as an early step, we narrow down our research at micro and macro levels to the following aspects: energy consumption and energy efficiency at sectoral and country levels, aggregate vehicle energy efficiency (regional level) and the technologies related to energy efficiency in the fields of power station, ICT in buildings and vehicles. We hope that our results can shed light on the relevant policies and studies in the future.Using large datasets, this dissertation provides a comprehensive narrative of how energy efficiency and the technologies related to energy efficiency evolve over time. We develop a new analytical framework and several measures for crucial factors affecting energy consumption and energy efficiency in trade at sectoral and country levels. Based on big data of individual vehicles and their owners, we design an empirical statistical approach to estimate regional aggregate vehicle energy efficiency that is formed by the technological characteristics and collective behaviors of micro-agents (e.g., purchase and usage of vehicles and migration), and describe the life cycle and restructuring of the vehicle population. Also, we identify the technological trajectories of technologies related to energy efficiency, and develop some measures for whether a country can be classified as an incumbent country or a latecomer country, and for how much a country contributes to technological development. The approaches used in this dissertation that build aggregate or macro measures on the basis of detailed and micro large datasets are of great value for the study of economic, industrial and scientific evolution. The 12 optimal ...

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Entry and exit of manufacturing plants over the business cycle

Cited by 174 publications

References 18 publications

The Growth and Human Capital Structure of New Firms Over the Business Cycle

The Growth and Human Capital Structure of New Firms Over the Business Cycle

The Market for Used Capital: Endogenous Irreversibility and Reallocation over the Business Cycle

Moving towards an energy efficient future

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