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Business dynamism and financial constraints

Alexander Amundsen et al.

Canadian Journal of Economics / Revue Canadienne D'Economique2026https://doi.org/10.1111/caje.70042article
AJG 3ABDC A
Weight
0.50

Abstract

Declining business dynamism has been observed across many advanced economies; however, its consequences have been less well studied. In this paper, we propose that declining business dynamism has led to a decrease in the financial constraints faced by firms. We use well established methods to identify financial constraints and then develop a new approach to measure the fraction of financially constrained firms. We find that the fraction has fallen over time and this is driven by rising firm age. Had business dynamism not declined, firms would be younger and more financially constrained.

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https://doi.org/https://doi.org/10.1111/caje.70042

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@article{alexander2026,
  title        = {{Business dynamism and financial constraints}},
  author       = {Alexander Amundsen et al.},
  journal      = {Canadian Journal of Economics / Revue Canadienne D'Economique},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/caje.70042},
}

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Business dynamism and financial constraints

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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