Economic Policies with Endogenous Entry and Exit of Plants
0
조회
0
다운로드
1
인용
0
참고문헌
키워드
초록
We build a general equilibrium model of industry dynamics and conduct policy experiments. The model is designed to match the entry and exit patterns in the U.S. manufacturing sector. We analyze two policies. First, we consider imposing a firing tax. Both a constant firing tax and a countercyclical firingtaxincreasethevolatilityoftheentryrateandaggregateoutput. Thisfindingcontrastswiththestabilizationeffectsoffiringtaxesinpreviousmodelswith exogenous entry and exit. Second, we consider subsidies to entry costs. Countercyclical entry subsidies stabilize the entry rate and are effective in stabilizing the aggregate output over the business cycle.
Abstract
We build a general equilibrium model of industry dynamics and conduct policy experiments. The model is designed to match the entry and exit patterns in the U.S. manufacturing sector. We analyze two policies. First, we consider imposing a firing tax. Both a constant firing tax and a countercyclical firingtaxincreasethevolatilityoftheentryrateandaggregateoutput. Thisfindingcontrastswiththestabilizationeffectsoffiringtaxesinpreviousmodelswith exogenous entry and exit. Second, we consider subsidies to entry costs. Countercyclical entry subsidies stabilize the entry rate and are effective in stabilizing the aggregate output over the business cycle.
참고문헌 (25)
- Bernanke, B., "Agency Costs, Net Worth, and Business Fluctuations", American Economic Review, 79, pp.14~31 (1989)
- Carlstrom, C. T., "Agency Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium Analysis", American Economic Review, 87, pp.893~910 (1997)
- Dynamics of Labor Demand: Evidence from Plant-level Observations and Aggregate Implications, "Cooper, R.", NBER, ~, pp.NBER Working Paper 10297 (2004)
- Davis, S. J., "Job Creation and Destruction" (1996), MIT Press
- Fisher, J. D. M., "The Dynamic Effects of Neutral and Investment-Specific Technology Shocks", Journal of Political Economy, 114, pp.413~451 (2006)
- Gertler M., "Unemployment Fluctuations with Staggered Nash Wage Bargaining", Journal of Political Economy, 117, pp.38~86 (2009)
- Hopenhayn, H. A., "Entry, Exit, and Firm Dynamics in Long Run Equilibrium", Econometrica, 60, pp.1127~1150 (1992)
- Hopenhayn, H., "Job Turnover and Policy Evaluation:A General Equilibrium Analysis", Journal of Political Economy, 101, pp.915~938 (1993)
- Kiyotaki, N., "Credit Cycles", Journal of Political Economy, 105, pp.211~248 (1997)
- Entry, Exit and Plant-Level Dynamics over the Business Cycle, "Lee, Y.", Federal Reserve Bank, ~, pp.Federal Reserve Bank of Cleveland Working Paper, 07-18R (2008)
- Lee, Y., "Entry and Exit of Manufacturing Plants over the Business Cycle", European Economic Review, 77, pp.20~27 (2015)
- Lee, Y., "Productivity and Employment Dynamics of US Manufacturing Plants", Economics Letters, 136, pp.190~193 (2015)
- Lee, Y., "A Model of Entry, Exit and Plant-Level Dynamics over the Business Cycle", ~ (2018)
- Firm Entry and Exit with Financial Frictions, "Macnamara, P.", University of Manchester, ~ (2012)
- Samaniego, R. M., "Entry, Exit and Business Cycles in a General Equilibrium Model", Review of Economic Dynamics, 11, pp.529~541 (2008)
- Lost Generations of Firms and Aggregate Labor Market Dynamics, "Sedlacek, P.", University of Bonn, ~ (2015)
- Sedlacek, P., "The Growth Potential of Startups over the Business Cycle", American Economic Revoew, 107, pp.3182~3210 (2017)
- Firm Entry and Employment Dynamics During the Great Recession, "Siemer, M.", FEDS, ~, pp.FEDS Working paper 201456 (2014)
- Tauchen, G., "Finite State Markov-Chain Approximations to Univariate and Vector Autoregressions", Economics Letters, 20, pp.177~181 (1986)
- Tian, C., "Firm-Level Entry and Exit Dynamics over the Business Cycles", European Economic Review, 102, pp.298~326 (2018)
- Veracierto, M. L., "Plant-Level Irreversible Investment and Equilibrium Business Cycles", American Economic Review, 92, pp.181~197 (2002)
- Veracierto, M. L., "Firing Costs and Business Cycle Fluctuations", International Economic Review, 49, pp.1~39 (2008)
- The Cyclicality of Entry and Exit: A General Equilibrium Analysis with Imperfect Information, "Woo, J.", University of Rochester, ~ (2015)
- Entry, Exit, and Capital Structure over the Business Cycle, "Zhang, L.", UCLA, ~ (2013)
- Financial Leverage, Job Reallocation, and Firm Dynamics over the Business Cycle, "Zhang, L.", UCLA, ~ (2016)