Business failures, macroeconomic risk and the effect of recessions on long-run growth: a panel cointegration approach

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Standard

Business failures, macroeconomic risk and the effect of recessions on long-run growth : a panel cointegration approach. / Santoro, Emiliano; Gaffeo, Edoardo.

I: Journal of Economics and Business, Bind 61, Nr. 6, 2009, s. 435-452.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Santoro, E & Gaffeo, E 2009, 'Business failures, macroeconomic risk and the effect of recessions on long-run growth: a panel cointegration approach', Journal of Economics and Business, bind 61, nr. 6, s. 435-452. https://doi.org/10.1016/j.jeconbus.2009.05.001

APA

Santoro, E., & Gaffeo, E. (2009). Business failures, macroeconomic risk and the effect of recessions on long-run growth: a panel cointegration approach. Journal of Economics and Business, 61(6), 435-452. https://doi.org/10.1016/j.jeconbus.2009.05.001

Vancouver

Santoro E, Gaffeo E. Business failures, macroeconomic risk and the effect of recessions on long-run growth: a panel cointegration approach. Journal of Economics and Business. 2009;61(6):435-452. https://doi.org/10.1016/j.jeconbus.2009.05.001

Author

Santoro, Emiliano ; Gaffeo, Edoardo. / Business failures, macroeconomic risk and the effect of recessions on long-run growth : a panel cointegration approach. I: Journal of Economics and Business. 2009 ; Bind 61, Nr. 6. s. 435-452.

Bibtex

@article{215d18c0d83111dea1f3000ea68e967b,
title = "Business failures, macroeconomic risk and the effect of recessions on long-run growth: a panel cointegration approach",
abstract = "This paper uses panel data on Italian regions to test two competing theories of long-run productivity dynamics: the opportunity-cost model, according to which productivity-enhancing activities have a comparative advantage during recessions; and the risk-aversion model, which predicts a negative relationship between transitory disturbances and productivity growth. Panel ECM estimates suggest that macroeconomic risk factors impinge on business failures on the same direction both in the short and in the long-run, and that the adjustment to the steady-state relationship is quite slow. Thus, our findings lend support to the risk-aversion theory of productivity growth and indicate that bankruptcy risks play a significant role in the propagation of macroeconomic shocks.",
keywords = "Faculty of Social Sciences, bankruptcy, macroeconomic instability, cross-sectional dependence",
author = "Emiliano Santoro and Edoardo Gaffeo",
note = "JEL classification: G33, E30, C23",
year = "2009",
doi = "10.1016/j.jeconbus.2009.05.001",
language = "English",
volume = "61",
pages = "435--452",
journal = "Journal of Economics and Business",
issn = "0148-6195",
publisher = "Elsevier",
number = "6",

}

RIS

TY - JOUR

T1 - Business failures, macroeconomic risk and the effect of recessions on long-run growth

T2 - a panel cointegration approach

AU - Santoro, Emiliano

AU - Gaffeo, Edoardo

N1 - JEL classification: G33, E30, C23

PY - 2009

Y1 - 2009

N2 - This paper uses panel data on Italian regions to test two competing theories of long-run productivity dynamics: the opportunity-cost model, according to which productivity-enhancing activities have a comparative advantage during recessions; and the risk-aversion model, which predicts a negative relationship between transitory disturbances and productivity growth. Panel ECM estimates suggest that macroeconomic risk factors impinge on business failures on the same direction both in the short and in the long-run, and that the adjustment to the steady-state relationship is quite slow. Thus, our findings lend support to the risk-aversion theory of productivity growth and indicate that bankruptcy risks play a significant role in the propagation of macroeconomic shocks.

AB - This paper uses panel data on Italian regions to test two competing theories of long-run productivity dynamics: the opportunity-cost model, according to which productivity-enhancing activities have a comparative advantage during recessions; and the risk-aversion model, which predicts a negative relationship between transitory disturbances and productivity growth. Panel ECM estimates suggest that macroeconomic risk factors impinge on business failures on the same direction both in the short and in the long-run, and that the adjustment to the steady-state relationship is quite slow. Thus, our findings lend support to the risk-aversion theory of productivity growth and indicate that bankruptcy risks play a significant role in the propagation of macroeconomic shocks.

KW - Faculty of Social Sciences

KW - bankruptcy

KW - macroeconomic instability

KW - cross-sectional dependence

U2 - 10.1016/j.jeconbus.2009.05.001

DO - 10.1016/j.jeconbus.2009.05.001

M3 - Journal article

VL - 61

SP - 435

EP - 452

JO - Journal of Economics and Business

JF - Journal of Economics and Business

SN - 0148-6195

IS - 6

ER -

ID: 15999537