Reallocation, firm turnover, and efficiency: Selection on productivity or profitability?

• 成果类型: Article
• 署名作者: Foster, Lucia; Haltiwanger, John; Syverson, Chad
• 署名单位: University System of Maryland; University of Maryland College Park; National Bureau of Economic Research; University of Chicago
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.98.1.394
• 发表日期: 2008
• 页码: 394-425
• 关键词: dynamics; industry; prices; entry; TRADE; EXIT

摘要

We investigate the nature of selection and productivity growth in industries where we observe producer-level quantities and prices separately. We show there are important differences between revenue and physical productivity. Because physical productivity is inversely correlated with price while revenue productivity is positively correlated with price, previous work linking (revenue-based) productivity to survival confounded the separate and opposing effects of technical efficiency and demand on survival, understating the true impacts of both. Further, we find that young producers charge lower prices than incumbents. Thus the literature understates new producers' productivity advantages and entry's contribution to aggregate productivity growth.