Ten Facts on Declining Business Dynamism and Lessons from Endogenous Growth Theory

A-Tier
Journal: American Economic Journal: Macroeconomics
Year: 2021
Volume: 13
Issue: 1
Pages: 257-98

Authors (2)

Ufuk Akcigit (University of Chicago) Sina T. Ates (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we review the literature on declining business dynamism and its implications in the United States and propose a unifying theory to analyze the symptoms and the potential causes of this decline. We first highlight 10 pronounced stylized facts related to declining business dynamism documented in the literature and discuss some of the existing attempts to explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially speak to all of these facts jointly. We next explore some theoretical predictions of this

Technical Details

RePEc Handle
repec:aea:aejmac:v:13:y:2021:i:1:p:257-98
Journal Field
Macro
Author Count
2
Added to Database
2026-01-24