How Firms Respond to Business Cycles: The Role of Firm Age and Firm SizeTeresa Fort, John C. Haltiwanger, Ron Jarmin and Javier Miranda , ( 61 )
IMF Economics Review
There remains considerable debate in the theoretical and empirical literature about the differences in the cyclical dynamics of firms by firm size. This paper contributes to the debate in two ways. First, the key distinction between firm size and firm age is introduced. The evidence presented in this paper shows that young businesses (that are typically small) exhibit very different cyclical dynamics than small/older businesses.