The paper studies the effects of the credit crunch caused by the 2008-13 double-dip recession on firm selection, focusing on firm entry and exit as its main mechanism.
The financial crisis triggered a selection of entrants increasingly skewed towards those with higher intangible capital intensity. This explains a substantial portion of the rise in intangible capital intensity measured in the aggregate data. Additionally, it shaped a technological transition that persisted well into the subsequent expansion.
