• Print
  • Email
  • Share

Working Paper, No. 2016-01, 2016
Firm Entry and Macroeconomic Dynamics: A State-level Analysis

Using an annual panel of U.S. states over the period 1982-2014, we estimate the response of macroeconomic variables to a shock to the number of new firms (startups). We find that these shocks have significant effects that persist for many years on real gross domestic product, productivity and population. This is consistent with simple models of firm dynamics where a “missing generation” of firms affects productivity persistently.



Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

Copyright © 2017. All rights reserved.

Please review our Privacy Policy | Legal Notices