How do firms cope with economic shocks in real time?

Summary

This study examines how UK businesses adapt to significant energy cost increases, driven by the energy crisis following Russia's invasion of Ukraine and the long-term Net Zero transition. It employs novel real-time survey and administrative data from the ONS to analyze firm responses across various economic margins, including output, price, and investment. The research, which followed a pre-registered analysis plan, found that firms generally pass on some costs and build cash reserves, but responses are highly varied, with small firms focusing on price increases and cash while large firms invest in capital.

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Source Document

https://example-government.gov/policy-document-link