A Theory of Falling Growth and Rising Rents
| Autor: | Philippe Aghion, Antonin Bergeaud, Timo Boppart, Peter J Klenow, Huiyu Li |
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| Rok vydání: | 2023 |
| Předmět: | |
| Zdroj: | Review of Economic Studies. |
| ISSN: | 1467-937X 0034-6527 |
| DOI: | 10.1093/restud/rdad016 |
| Popis: | Growth has fallen in the U.S. amid a rise in firm concentration. Market share has shifted to low labour share firms, while within-firm labour shares have actually risen. We propose a theory linking these trends in which the driving force is falling overhead costs of spanning multiple products or a rising efficiency advantage of large firms. In response, the most efficient firms (with higher markups) spread into new product lines, thereby increasing concentration and generating a temporary burst of growth. Eventually, due to greater competition from efficient firms, within-firm markups and incentives to innovate fall. Thus our simple model can generate qualitative patterns in line with the observed trends. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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