UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

The Growth Potential of Startups over the Business Cycle

Sterk, V; Sedlacek, P; (2017) The Growth Potential of Startups over the Business Cycle. American Economic Review , 107 (10) pp. 3182-3210. 10.1257/aer.20141280. Green open access

[thumbnail of Sedlacek_growth_potential_of_startups_over.pdf]
Preview
Text
Sedlacek_growth_potential_of_startups_over.pdf

Download (1MB) | Preview

Abstract

This paper shows that employment in cohorts of US firms is strongly influenced by aggregate conditions at the time of their entry. Employment fluctuations of startups are procyclical, they persist into later years, and cohort-level employment variations are largely driven by differences in firm size, rather than the number of firms. An estimated general equilibrium firm dynamics model reveals that aggregate conditions at birth, rather than post-entry choices, drive the majority of cohort-level employment variation by affecting the share of startups with high growth potential. In the aggregate, changes in startup conditions result in large, slow-moving fluctuations in employment.

Type: Article
Title: The Growth Potential of Startups over the Business Cycle
Open access status: An open access version is available from UCL Discovery
DOI: 10.1257/aer.20141280
Publisher version: http://dx.doi.org/10.1257/aer.20141280
Language: English
Keywords: Firm Dynamics, Heterogeneous Agents, DSGE
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/1566775
Downloads since deposit
93Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item