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This paper examines the cyclical nature of productivity dispersion in U.S. durable manufacturing, finding that it is greater during recessions than in booms, primarily due to a higher share of unproductive firms in downturns. A business cycle model is constructed to explain these findings, indicating that in booms, only more productive firms survive due to higher costs associated with fixed inputs. The research highlights that this countercyclical productivity dispersion is more pronounced in durable goods

Author

lubi pila

Language

EN