Federal Reserve Bank of Cleveland
1455 E 6th St
Cleveland, OH 44114
Institutional Affiliation: Federal Reserve Bank of Cleveland
Information about this author at RePEc
NBER Working Papers and Publications
|February 2017||Firm Entry and Exit and Aggregate Growth|
with Jose Asturias, Timothy J. Kehoe, Kim J. Ruhl: w23202
Using data from Chile and Korea, we find that a larger fraction of aggregate productivity growth is due to firm entry and exit during fast-growth episodes compared to slow-growth episodes. Studies of other countries confirm this empirical relationship. We develop a model of endogenous firm entry and exit based on Hopenhayn (1992). Firms enter with efficiencies drawn from a distribution whose mean grows over time. After entering, a firm’s efficiency grows with age. In the calibrated model, reducing entry costs or barriers to technology adoption generates the pattern we document in the data. Firm turnover is crucial for rapid productivity growth.
|January 2016||The Interaction and Sequencing of Policy Reforms|
with Jose Asturias, Timothy J. Kehoe, Kim J. Ruhl: w21840
In what order should a developing country adopt policy reforms? Do some policies complement each other? Do others substitute for each other? To address these questions, we develop a two-country dynamic general equilibrium model with entry and exit of firms that are monopolistic competitors. The model includes barriers to entry of new firms, barriers to international trade, and barriers to contract enforcement. We find that the same reform can have very different effects on other economic outcomes, depending on the types of distortions present. In our model, we find that reforms to trade barriers and barriers to the entry of new firms are substitutable, as are reforms to contract enforcement and trade barriers. In contrast, we find that reforms to contract enforcement and the barriers ...
Published: Jose Asturias & Sewon Hur & Timothy J. Kehoe & Kim J. Ruhl, 2016. "The Interaction and Sequencing of Policy Reforms," Journal of Economic Dynamics and Control, . citation courtesy of