---- Acknowledgments ----
We thank Richard Rogerson and John Haltiwanger for encouraging us to explore the decline in business dynamism in the United States. In addition, we thank Chiara Criscuolo, Chad Syverson, seminar and conference participants at the 7th CompNet Annual Conference, Boston College, Collège de France, the University of Texas at Austin, the Federal Reserve Bank of Dallas, the OECD, the Central Bank of Turkey, the Bank of Italy, and the Koc University Winter Workshop in Economics. Aakaash Rao and Zhiyu Fu have provided excellent research assistance. Akcigit gratefully acknowledges financial support from the National Science Foundation. The views in this paper are solely the responsibilities of the authors and should not be interpreted as reflecting the view of the Board of Governors of the Federal Reserve System, nor or of any other person associated with the Federal Reserve System, nor of the National Bureau of Economic Research.