Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.

Economic activity

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

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.