Business dynamism, sectoral reallocation and productivity in a pandemic
| Autor: | Guido Ascari, Andrea Colciago, Riccardo Silvestrini |
|---|---|
| Přispěvatelé: | Economics |
| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: |
History
Economics and Econometrics Polymers and Plastics Social distance media_common.quotation_subject Monetary policy Monetary economics Recession Industrial and Manufacturing Engineering Shock (economics) Pandemic Economics Dynamism Preprint Business and International Management Productivity Finance media_common |
| Zdroj: | European Economic Review. Elsevier |
| ISSN: | 0014-2921 |
| Popis: | Asymmetric effects across sectors are the distinctive features of the Covid-19 shock. Business Formation Statistics in the United States show a reallocation of entry and exit opportunities across sectors in the initial phase of the pandemic. To explain these facts, we propose an Epidemiological-Industry Dynamic model with heterogeneous firms and endogenous firms dynamics. Our analysis suggests that the cleansing effect on business dynamism of the Covid-19 crisis, which typically characterizes recessions, is sector-specific. The framework can rationalize the dynamics of aggregate productivity during the crisis. Monetary policy and sticky wages are central ingredients to capture reallocation effects. Social distancing, by smoothing out cleansing in the social sector, slows down the reallocation process and prolongs the recession, but saves lives. |
| Databáze: | OpenAIRE |
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