Giannoulakis, S., & Sakellaris, P., " Anatomy of the Greek Depression with Firm-Level Data: The Importance of Demand Shocks"

Title: "Anatomy of the Greek Depression with Firm-Level Data: The Importance of Demand Shocks"

Speakers: Dr Stelios Giannoulakis, Hellenic Parliamentary Budget Office & Professor Plutarchos Sakellaris, Athens University of Economics and Business

Host:  Assistant Professor Efthymios Athanasiou, Department of Economics, Athens University of Economics and Business

Time: 15.30 -17.00

Room:  76, Patission Str., Antoniadou Wing, 3rd floor, Room A36

Αbstract: During the Greek Depression, which saw a 22% 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, 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.