Foster Haltiwanger Syverson (2008) - Reallocation Firm Turnover And Efficiency Selection On Productivity Or Profitability

From edegan.com
Jump to navigation Jump to search
Article
Has bibtex key
Has article title Reallocation Firm Turnover And Efficiency Selection On Productivity Or Profitability
Has author Foster Haltiwanger Syverson
Has year 2008
In journal
In volume
In number
Has pages
Has publisher
© edegan.com, 2016

Reference(s)

  • Foster, L., J. Haltiwanger, and C. Syverson (2008), "Reallocation, Firm Turnover and Efficiency: Selection on Productivity or Profitability", American Economic Review, March. pdf

Abstract

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.

Retrieved from "http://www.edegan.com/mediawiki/index.php?title=Foster_Haltiwanger_Syverson_(2008)_-_Reallocation_Firm_Turnover_And_Efficiency_Selection_On_Productivity_Or_Profitability&oldid=46786"