Title of article :
The scarringeffectofrecessions
Author/Authors :
Min Ouyang، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
Abstract :
According totheconventionalview,recessionsimproveresourceallocationbydriving
out lessproductivefirms.Thispaperpositsanadditionalscarringeffect:recessions
impedethedevelopmentsofpotentiallysuperiorfirmsbydestroyingthemduringtheir
infancy.Amodelisdevelopedtocaptureboththecleansingandthescarringeffects.
A keyingredientofthemodelisthatidiosyncraticproductivityisnotdirectly
observable,butcanbelearnedovertime.Whencalibratedwithstatisticsonentry,
exitandproductivitydifferentials,themodelsuggeststhatthescarringeffectdominates
thecleansingeffect,andgivesrisetoloweraverageproductivityduringrecessions
Keywords :
Cleansing effectScarring effectCreativedestructionLearningDemand shocks
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
