Entry costs, industry structure, and cross-country income and TFP differences

• 成果类型: Article
• 署名作者: Barseghyan, Levon; DiCecio, Riccardo
• 署名单位: Cornell University; Federal Reserve System - USA; Federal Reserve Bank - St. Louis
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2011.05.010
• 发表日期: 2011
• 页码: 1828-1851
• 关键词: Entry costs; TFP; industry structure

摘要

Entry costs vary dramatically across countries. To assess their impact on cross-country differences in output and TFP, we construct a model with endogenous entry and operation decisions by firms. We calibrate the model to match the U.S. distribution of employment and firms by size. Higher entry costs lead to greater misallocation of productive factors and lower TFP and output. In the model, countries in the lowest decile of the entry costs distribution have 1.32 to 1.45 times higher TFP and 1.52 to 1.75 times higher output per worker than countries in the highest decile. As in the data, higher entry costs are associated with lower entry rates and business density. (C) 2011 Elsevier Inc. All rights reserved.