Barriers to Reallocation and Economic Growth: The Effects of Firing Costs

Mukoyama, Toshihiko; Osotimehin, Sophie

doi:10.1257/mac.20170170

Cited by 13 publications

(13 citation statements)

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“…As in Mukoyama and Osotimehin (2016), V τ (q) can be shown to be linearly homogeneous in q along the balanced-growth path. That is, V τ (q) = v τ q for a constant v τ .…”

Section: Dynamic Programmentioning

confidence: 87%

Firm Growth Through New Establishments

et al. 2019

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This paper analyzes firm growth along two margins: the extensive margin (adding more establishments) and intensive margin (adding more workers per establishment). We utilize administrative datasets to document the behavior of these two margins in relation to changes in the U.S. firm size distribution. Between 1990 and 2015, we find that the significant increase in average firm size was driven primarily by the expansion along the extensive margin, particularly in superstar firms. We develop a general equilibrium model of endogenous innovation that features both extensive and intensive margins of firm growth. We estimate the model to uncover the fundamental forces that caused the changes over this time period through the lens of our model. We find that, over time, the cost of innovations that lead to new establishments has declined for firms who are innovative in that dimension. Meanwhile, the duration that a firm can enjoy high growth through such innovation became shorter, and firm entry became more costly.

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“…As in Mukoyama and Osotimehin (2016), V τ (q) can be shown to be linearly homogeneous in q along the balanced-growth path. That is, V τ (q) = v τ q for a constant v τ .…”

Section: Dynamic Programmentioning

confidence: 87%

Firm Growth Through New Establishments

et al. 2019

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“…We may thus expect to observe a power law in the size distribution of a population whose members have been growing like geometric Brownian motions since birth, and whose distribution of ages is exponential. The combination of Gibrat’s law with an exponential age distribution as a generative mechanism for power laws has been used extensively in recent economics literature [7] , [8] , [27] , [28] , [29] , [30] , [31] , [32] , [33] , [34] , [35] , [36] , [37] , [38] , [39] , [40] , [41] . Related techniques have also been employed in the physics literature [42] , [43] , [44] , [45] .…”

Section: Introductionmentioning

confidence: 99%

On the emergence of a power law in the distribution of COVID-19 cases

Beare

Toda

2020

Physica D: Nonlinear Phenomena

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free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre-including this research content-immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.

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“…We use this equivalence to relate our work to previous analysis of size-dependent policies such as the work by Guner et al (2008) and more recently the empirical analysis in Gourio and Roys (2014) and Garicano et al (2013) using micro data from France. Our analysis reveals the importance of 5 Related to our work is also the analysis in Mukoyama and Osotimehin (2016), studying the effects of firing costs in a model of endogenous growth.…”

Section: Introductionmentioning

confidence: 93%

Firing costs, misallocation, and aggregate productivity

Rocha

Tavares

Restuccia

2019

Journal of Economic Dynamics and Control

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For helpful comments we thank participants at the Macroeconomics and Business CYCLE Conference in Santa Barbara and Universidade de Vigo. All remaining errors are our own. Restuccia gratefully acknowledges the financial support from the Canada Research Chairs program and the Social Sciences and Humanities Research Council of Canada. Mendes Tavares gratefully acknowledges the financial support of DIFD. Da Rocha gratefully acknowledges the financial support of Xunta de Galicia (ref. GRC2015/014). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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Barriers to Reallocation and Economic Growth: The Effects of Firing Costs

Cited by 13 publications

References 71 publications

Firm Growth Through New Establishments

Firm Growth Through New Establishments

On the emergence of a power law in the distribution of COVID-19 cases

Firing costs, misallocation, and aggregate productivity

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