Firm creation, entry costs, and house‐price volatility∗
研究发现新企业创建水平与房价周期波动之间存在显著正向跨国关系，通过包含企业进入、住房和住房金融约束的模型，揭示企业进入是放大住房金融冲击的重要机制。
Abstract Amid growing work on the link between firm creation and cyclical housing‐market dynamics, we document a significant, positive, and robust cross‐country relationship between the level of new firm creation and the cyclical volatility of house prices. Using a business‐cycle model with endogenous firm entry, housing, and housing‐finance constraints and shocks, we show that, via general equilibrium effects, greater average firm entry can be a powerful amplification mechanism of housing‐finance shocks. These shocks and constraints play a key role in quantitatively rationalizing the link between firm creation and house‐price volatility across countries.