Firm dynamics

• June 30, 2023

  Exploring global value and supply chains

  

  Patrick Alexander, Chris D'Souza, Yuko Imura, Lena Suchanek

  The things we buy come out of complex production chains that span the globe. Understanding these connections is crucial for today's economies.

  Content Type(s): Publications, The Economy, Plain and Simple Research Topic(s): Business fluctuations and cycles, Firm dynamics, International topics, Trade integration

• Markups and inflation during the COVID-19 pandemic

  Staff Analytical Note 2023-8 Olga Bilyk, Timothy Grieder, Mikael Khan

  We find that prices and costs for consumer-oriented firms moved roughly one-for-one during the COVID-19 pandemic. This means firms fully passed rising costs through to the prices they charged. However, our results are suggestive, given data limitations and the uncertainty associated with estimating markups.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Firm dynamics, Inflation and prices JEL Code(s): D, D2, D4, E, E2, E3, L, L1

• SME Failures Under Large Liquidity Shocks: An Application to the COVID-19 Crisis

  Staff Working Paper 2023-32 Pierre-Olivier Gourinchas, Şebnem Kalemli-Özcan, Veronika Penciakova, Nicholas Sander

  We study the effects of financial frictions on firm exit when firms face large liquidity shocks. We develop a simple model of firm cost-minimization that introduces a financial friction that limits firms’ borrowing capacity to smooth temporary shocks to liquidity.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Coronavirus disease (COVID-19), Firm dynamics, International topics JEL Code(s): D, D2, D21, D22, E, E6, E65, H, H8, H81