Firm Ex Ante Heterogeneity, Entry and the Labour Share

• 成果类型: Article
• 署名作者: Grazzini, Jakob; Rossi, Lorenza
• 署名单位: University of Pavia; Lancaster University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueac054
• 发表日期: 2022
• 页码: 235-257
• 关键词: UNITED-STATES; decline; GROWTH; rise

摘要

This paper considers a two-sector real business cycle model augmented with firm heterogeneity and firm dynamics, and studies the steady state and dynamic properties of the model in response to a decline in the relative price of investment. It shows that both firm heterogeneity and entry play a crucial role in the decline in the labour share and the increase in capital intensity observed in the US economy. Using ORBIS firm-level data of the US economy, the paper finds robust evidence consistent with the mechanisms described in the model.