A Comment on: Low Interest Rates, Market Power, and Productivity Growth
成果类型：
Article
署名作者：
Chikis, Craig A.; Goldberg, Jonathan; Lopez-Salido, David
署名单位：
University of Chicago; Federal Reserve System - USA; Federal Reserve System Board of Governors
刊物名称：
ECONOMETRICA
ISSN/ISSBN：
0012-9682
DOI：
10.3982/ECTA20621
发表日期：
2023
页码：
2457-2461
关键词：
摘要：
Using an endogenous growth model, Liu, Mian, and Sufi (2022) (LMS) show that a decline in the interest rate can lead to a fall in productivity growth and a rise in leader-laggard productivity gaps and firm profits. We identify two issues in their quantitative analysis of transition dynamics: a time-scale error and the omission of composition terms in calculating productivity growth along the transition to a new balanced growth path. Correcting the time-scale error and including the composition terms, the decline in the interest rate that LMS study leads to a large and protracted productivity boom lasting about 20 years. In addition, the average leader-laggard gap grows much more slowly than reported in their paper. We also point out an issue in their quantitative analysis of steady-state profit shares. These issues are related to the quantitative exercises, and do not affect the key theoretical contributions of LMS.