Siemer, Michael - Federal Reserve Board (Board of Governors of the … - 2014
The 2007-2009 recession is characterized by: a large drop in employment, an unprecedented decline in firm entry, and a … aggregate demand and is particularly strong in small young firms. I show in a heterogeneous firms model with endogenous firm … entry and financial constraints that a large financial shock results in a long-lasting recession caused by a "missing …