A Theory of Falling Growth and Rising Rents

• 成果类型: Article
• 署名作者: Aghion, Philippe; Bergeaud, Antonin; Boppart, Timo; Klenow, Peter J.; Li, Huiyu
• 署名单位: Universite PSL; College de France; INSEAD Business School; University of London; London School Economics & Political Science; Hautes Etudes Commerciales (HEC) Paris; Center for Economic & Policy Research (CEPR); Stockholm University; University of St Gallen; Stanford University; National Bureau of Economic Research; Federal Reserve System - USA; Federal Reserve Bank - San Francisco
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdad016
• 发表日期: 2023
• 页码: 2675-2702
• 关键词: MARKET POWER; labor share; rise; decline; TRENDS

摘要

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.