The Dynamic Effects of Antitrust Policy on Growth and Welfare

• 成果类型: Article
• 署名作者: Cavenaile, Laurent; Celik, Murat Alp; Tian, Xu
• 署名单位: University of Toronto; University Toronto Scarborough; University of Toronto; University of Toronto; University System of Georgia; University of Georgia
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2021.04.011
• 发表日期: 2021
• 页码: 42-59
• 关键词: Antitrust policy; Mergers and Acquisitions; INNOVATION; GROWTH; social welfare

摘要

To study the dynamic effects of antitrust policy on growth and welfare, we develop and estimate the first general equilibrium model with Schumpeterian innovation, oligopolistic product market competition, and endogenous M&A decisions. The estimated model reveals that: (1) Existing policies generate gains in growth and welfare. (2) Strengthening antitrust enforcement could deliver substantially higher gains. (3) The dynamic long-run effects of antitrust policy on social welfare are an order of magnitude larger than the static gains from higher allocative efficiency in production. (4) Current HHI-based antitrust rules leave the majority of anticompetitive acquisitions undetected, highlighting the need for alternative guidelines. (c) 2021 Elsevier B.V. All rights reserved.