American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Anatomy of the Greek Depression with Firm-Level Data: The Importance of Demand Shocks
American Economic Journal: Macroeconomics
(pp. 260–96)
Abstract
During the Greek Depression, which saw a 22 percent decline in output, young firms and small firms experienced significantly steeper declines in sales growth compared to their mature and larger counterparts. This disparity was largely driven by adverse demand shocks and was further intensified by financing constraints (FCs), with a significant interaction between these two factors amplifying the impact. Firm-level heterogeneity played a critical role in shaping macroeconomic outcomes, with the disproportionate impact on young firms and small firms accounting for approximately one-quarter of the total output decline during the crisis.Citation
Giannoulakis, Stelios, and Plutarchos Sakellaris. 2026. "Anatomy of the Greek Depression with Firm-Level Data: The Importance of Demand Shocks." American Economic Journal: Macroeconomics 18 (1): 260–96. DOI: 10.1257/mac.20220125Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- E23 Macroeconomics: Production
- E32 Business Fluctuations; Cycles
- E44 Financial Markets and the Macroeconomy
- G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L25 Firm Performance: Size, Diversification, and Scope