Comments on: Business Births and Deaths http://www.arnoldkling.com/blog/business-births-and-deaths/ taking the most charitable view of those who disagree Mon, 21 Dec 2020 14:00:34 +0000 hourly 1 https://wordpress.org/?v=4.0.32 By: D. F. Linton http://www.arnoldkling.com/blog/business-births-and-deaths/#comment-337479 Thu, 02 Jan 2014 21:38:24 +0000 http://www.arnoldkling.com/blog/?p=2537#comment-337479 The real fruitfulness of macro is that there is always another story that can be made or forced to fit a set of facts, thus the efforts of macro practioners do not suffer from diminishing returns.

]]> By: Drea http://www.arnoldkling.com/blog/business-births-and-deaths/#comment-337037 Thu, 02 Jan 2014 17:21:32 +0000 http://www.arnoldkling.com/blog/?p=2537#comment-337037 Not in the field, so having a hard time finding this on the census website…

How do they measure establishment birth? Is this an answer to a question like “did you start a new business?”, or is it tracking business incorporations or registrations with state or local agencies? Would sole proprietorships be counted in this measure or missed?

My caveat is that you can be more successful as a sole proprietor or self-employed person today than you could 20 years ago. While that model may not create “employment”, they can create a non-firm network of demand for complimentary services.

]]> By: TEA http://www.arnoldkling.com/blog/business-births-and-deaths/#comment-336983 Thu, 02 Jan 2014 16:56:41 +0000 http://www.arnoldkling.com/blog/?p=2537#comment-336983 There’s a statistically significant relationship between net-entry rate and year-over-year change in real, private-sector GDP (C + I + NX): y = 0.214x + 0.011 (n = 35, r-squared = 0.14, t = 0.006). I used that relationship to normalize net-entry rate for fluctuations in real GDP. A plot of the normalized rate against year shows decided downward trend in net-entry rate. This is consistent with the decided downward trend in the real rate of GDP growth since the end of World War II. I attribute these downward trends to the upward trend in government spending (including “social transfers”) and the ever-mounting tally of additions to the Code of Federal Regulations (https://www.federalregister.gov/uploads/2013/05/OFR-STATISTICS-CHARTS-ALL1-1-1.xls).

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