Slow recoveries
By: Raphael Bergoeing, Norman Loayzaw, Andrea Repetto.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10584; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10584.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Economic stabilization.; Industrial productivity -- Mathematical models.; Financial crises -- Mathematical models.; Economic policy -- Mathematical models.; Equilibrium (Economics) -- Mathematical models.
Description: "Economies respond differently to aggregate shocks that reduce output.  While some countries rapidly recover their pre-crisis trend, others stagnate.  Recent studies provide empirical support for a link between aggregate growth and plant dynamics through its effect on productivity: the entry and exit of firms and the reallocation of resources from less to more efficient firms explain a relevant part of transitional productivity dynamics.  In this paper we use a stochastic general equilibrium model with heterogeneous firms to study the effect on aggregate short-run growth of policies that distort the process of birth, growth and death of firms, as well as the reallocation of resources across economic units.  Our findings show that indeed policies that alter plant dynamics can explain slow recoveries.  We also find that output losses associated to delayed recoveries are large"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/27/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.