Firm Exit and Financial Frictions

We thank Yan Bai (discussant), Luigi Bocola, Joao Gomes, Christian Hellwig, Priit Jeenas (discussant), Urban Jermann, Sebnem Kalemli-Ozcan, Patrick Kehoe, Daniel Xu, and EAGLS, as well as participants at the Bank of Canada, Boston University, Carnegie Mellon University, Columbia University, Cornell University, Duke University, EIEF, the Federal Reserve Board, the Federal Reserve Banks of Chicago, Minneapolis, Philadelphia, San Francisco, and New York, Insper, the Inter-American Development Bank, PUC Rio, Rice University, Southern Methodist University, the University of Connecticut, the University of Maryland, UT Austin, Wake Forest, Wharton and various conferences for insightful comments. We also thank Catherine Gonzalez, Tanvi Jindal, and Weiting Miao, who provided excellent research assistance. Financial support from the National Science Foundation under grants SES-2116928 (Bornstein) and SES-2116375 (Castillo-Martinez) is gratefully acknowledged. Any views expressed are those of the authors and not those of the U.S. Census Bureau. The Census Bureau has reviewed this data product to ensure appropriate access, use, and disclosure avoidance protection of the confidential source data used to produce this product. This research was performed at a Federal Statistical Research Data Center under FSRDC Project Number 2606. (CBDRB-FY26-P2606-R12893). The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research.