Journal of Monetary Economics 2018 DOI: 10.1016/j.jmoneco.2017.10.004 View full text
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Titan Alon, David Berger, Robert Dent, Benjamin Pugsley

Abstract: We investigate the link between declining firm entry, aging incumbent firms and sluggish U.S. productivity growth. We provide a dynamic decomposition framework to characterize the contributions to industry productivity growth across the firm age distribution and apply this framework to the newly developed Revenue-enhanced Longitudinal Business Database (ReLBD). Overall, several key findings emerge:(i) the relationship between firm age and productivity growth is downward sloping and convex; (ii) the magnitudes …

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