and countercyclical exit along a real business cycle lead to endogenous cyclical movements in average firm productivity …

and countercyclical exit along a real business cycle lead to endogenous cyclical movements in average firm productivity …

of entry and exit of U.S. manufacturing plants, in terms of employment and productivity, between 1972 and 1997. We show … compare its predictions to the data. In our model, plants enter and exit endogenously, and the size and productivity of …

the market during bad times. Second, when we look at total factor productivity (TFP), we don't see a clear "cleansing …

deteriorating productivity and rising exit rates. We find supportive evidence for other US-based stylized facts, such as young firms …