Inflation and Establishment Turnover
We study a channel through which inflation can have effects on the real economy. Using job creation and destruction data from U.S. manufacturing establishments from 1973-1988, we show that both jobs created by new establishments and jobs destroyed by dying establishments are negatively correlated with inflation. These results are robust to controls for the real-business cycle and monetary policy. Over a longer time frame, data on business failures confirm our results obtained from job creation and destruction data. We discuss how interaction of inflation with financial-markets, nominal-wage rigidities, and imperfect competition could explain the empirical evidence.
Year of publication: |
2007
|
---|---|
Authors: | Antinolfi, Gaetano ; Kaplan, David S. |
Published in: |
Eastern Economic Journal. - Eastern Economic Association - EEA, ISSN 0094-5056. - Vol. 33.2007, 3, p. 317-341
|
Publisher: |
Eastern Economic Association - EEA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Inflation and establishment turnover
Antinolfi, Gaetano, (2007)
-
Kaplan, David S., (2012)
-
Enforceability of Labor Law : Evidence From A Labor Court In Mexico
Kaplan, David S., (2008)
- More ...