Kolmapäeval, 18. novembril kell 11.00 Join MS Teams
Lenno Uusküla (Tartu Ülikool; Eesti Pank)
"Productivity and Firm Turnover"
The paper shows that investment specific technology shocks lead to creative destrcution - more new firms are born and more old firms are closed in the United States. Labor neutral technology shocks also bring more new firms, but contrary to the investment specific shocks, lead to fewer old firms being closed. The paper then suggests a DSGE model where new firms are created small and grow over time. This model can match the stilized on technology shocks, explain high volatility in the creation of new firms, and amplify the effects of macroeconomic shocks on output and hours.