Working Paper: Firm-level Entry and Exit over the Danish Business Cycle

Working Paper - December 2018 - No. 132

Authors Andersen, Svend Greniman (Danmarks Nationalbank); Rozsypal, Filip (Danmarks Nationalbank)
Subject Economic activity and employment; Productivity and competitiveness; Business enterprises and households
Type Working paper
Year 2018
Published 19 December 2018
We use micro level registry data to study firm dynamics in Denmark. Similar to findings for the US, young firms are more likely to exit and to grow faster over time but Danish firms also take longer to reach maturity. We do not observe any signs of a slowdown in the entry rate or long-run scarring effects on firms entering in recessions. However, fluctuations in the entry rate have persistent effects on the long-run aggregate volume of value added.